Deputy Commissioner of Taxation v A and S Services Australia Pty Ltd

Deputy Commissioner of Taxation sought ex parte orders for the appointment of provisional liquidators for three companies, freezing orders in respect of the companies' assets and orders requiring the disclosure of assets. The companies were engaged in providing business advisory services and were alleged to be involved in phoenix activities and systematic tax evasion. The Court was required to determine whether there was a justifiable lack of confidence in the conduct and management of the companies' affairs, and whether the Commissioner had established a risk of the companies removing, disposing of, dealing with, or diminishing the value of their assets. The Court found that the Commissioner had established a prima facie case for the making of each of the orders sought. The Court was satisfied that there was a justifiable lack of confidence in the conduct and management of the companies' affairs, and that there was a risk that the companies would remove, dispose of, deal with or diminish the value of their assets. The Court made orders for the appointment of provisional liquidators, freezing orders in respect of the companies' assets, and disclosure of assets. The Court also made a freezing order in respect of a third party who was found to be beneficially owning an asset of one of the companies. The Commissioner's application for compensation to be paid to third parties affected by the orders was reserved for the next hearing.