Commissioner of State Revenue v Kimiora

The Commissioner of State Revenue applied to the Federal Circuit Court of Australia for a sequestration order against Kimiora. The primary dispute concerned the validity of the affidavit supporting the creditor's petition, which Kimiora argued was not properly sworn. A secondary issue arose regarding the correct legislation to apply for the calculation of interest on the debt.

The court was required to determine two principal legal issues. Firstly, whether the affidavit in support of the creditor's petition was affirmed in accordance with the requirements of section 306 of the *Bankruptcy Act 1966* (Cth), given that it was not properly sworn when witnessed. Secondly, the court had to ascertain which legislative regime governed the calculation of interest on the judgment debt: the *Magistrates Court Act 1989* (Vic) or the *Taxation Administration Act 1997* (Vic).

On the issue of the affidavit, the court found that the affirmation was regular and complied with the *Bankruptcy Act*. Regarding the calculation of interest, the court held that interest payable on unpaid tax under the *Duties Act 2000* (Vic) was governed by the *Taxation Administration Act 1997* (Vic). The court reasoned that the *Taxation Administration Act* establishes a separate code for the recovery of unpaid tax, distinct from the general provisions for interest on ordinary judgment debts that might apply under other legislation, such as the *Magistrates Court Act 1989* (Vic).

Consequently, the court made the sequestration order against Kimiora.