Citystart Pty Ltd v Deputy Commissioner of Taxation for the Commonwealth of Australia

Citystart Pty Ltd applied to set aside a statutory demand issued by the Deputy Commissioner of Taxation. The dispute centred on whether a statutory demand, posted to Citystart’s registered office, was effectively served when it was placed in the post office box for collection rather than delivered directly to the registered address. The Federal Court was required to decide if the deeming provision in s 109Y of the Corporations Law applied and whether Citystart could prove that service had not been effected.

The Court examined the legislative intent behind s 109Y, which was designed to assist and protect creditors who use registered post for service. The Court found that the deeming provision should apply to the ordinary course of post as it affects the company to whom the letter was addressed. The arrangement for mail collection from the post office, rather than direct delivery, did not take it outside the ordinary course of post. The Court emphasised that the legislative intent was to ensure certainty and protection for creditors, and the onus was on the company to prove non-delivery if the deeming provision operated.

The Court concluded that the deeming provision applied, and Citystart had not satisfied the Court that service had not been effected. The statutory demand was deemed to have been served on the date it was placed in the post office box.

The Court dismissed the application to set aside the statutory demand.