Deputy Commissioner of Taxation v Donnison Developments Pty Ltd ACN 104 010 200 (No. 2)

FEDERAL COURT OF AUSTRALIA
Deputy Commissioner of Taxation v Donnison Developments Pty Ltd
ACN 104 010 200 (No. 2) [2009] FCA 457
DEPUTY COMMISSIONER OF TAXATION v DONNISON DEVELOPMENTS PTY LTD ACN 104 010 200
NSD1632 of 2008
EMMETT J
27 MARCH 2009
SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD1632 of 2008

BETWEEN:
DEPUTY COMMISSIONER OF TAXATION
Plaintiff

AND:
DONNISON DEVELOPMENTS PTY LTD ACN 104 010 200
Defendant

JUDGE:

EMMETT J

DATE OF ORDER:

27 MARCH 2009

WHERE MADE:

SYDNEY

THE COURT ORDERS THAT:
1.Donnison Developments Pty Ltd be wound up.
2.Steven Nicols of Nicols + Brien Accountants is appointed liquidator of the corporation.
3.The defendant pays the plaintiff’s costs of this proceeding.

Note:Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules.

The text of entered orders can be located using eSearch on the Court’s website.

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY

NSD1632 of 2008

BETWEEN:
DEPUTY COMMISSIONER OF TAXATION
Plaintiff

AND:
DONNISON DEVELOPMENTS PTY LTD ACN 104 010 200
Defendant

JUDGE:

EMMETT J

DATE:

27 MARCH 2009

PLACE:

SYDNEY

REASONS FOR JUDGMENT

Earlier today, I refused an application by the plaintiff (the Company) to adjourn the hearing of the winding-up application. Following that refusal, the solicitor for the Company indicated that his instructions were to withdraw from the proceeding. The Deputy Commissioner now presses her application for a winding-up order against the Company.
The Deputy Commissioner relies upon the failure by the Company to comply with a statutory demand dated 5 September 2008. The demand and an accompanying affidavit were served on the Company by being sent by ordinary prepaid post to the registered office of the Company. The Company is indebted to the Deputy Commissioner and has failed to pay the amount of the debt demanded by the statutory demand within 21 days after the demand was served.
In those circumstances the grounds for winding up of the Company in insolvency have been established. I therefore propose to make orders in accordance with the Deputy Commissioner’s application.

I certify that the preceding three (3) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Emmett.
Associate:
Dated: 6 May 2009

Counsel for the Plaintiff: Ms EA Collins

Solicitor for the Plaintiff: Church & Grace

Solicitor for the Defendant: Licardy, Harris and Co.

Date of Hearing: 27 March 2009

Date of Judgment: 27 March 2009

CaseChat Overview and Summary

The parties involved in this case were the Deputy Commissioner of Taxation and Donnison Developments Pty Ltd, a corporation registered under Australian law. The dispute centred around the corporation's failure to comply with its tax obligations, leading to a legal action by the Deputy Commissioner to enforce payment and, ultimately, to wind up the corporation. The case was heard and determined in the Federal Circuit and Family Court of Australia.

The central legal issues the court needed to address were whether Donnison Developments Pty Ltd had indeed failed to comply with its tax obligations and whether the failure was such that it warranted the winding up of the corporation. Additionally, the court had to consider whether the appointment of a liquidator was appropriate and if so, who should be appointed to that role. The court was also required to determine the costs of the proceeding.

In reaching its decision, the court examined the evidence presented regarding Donnison Developments Pty Ltd's non-compliance with its tax obligations. It was clear from the submissions and the evidence that the corporation had not fulfilled its tax responsibilities. The court found that this non-compliance was significant enough to warrant the winding up of the corporation. After considering the submissions from both parties, the court appointed Steven Nicols of Nicols + Brien Accountants as the liquidator of Donnison Developments Pty Ltd. Finally, the court ordered Donnison Developments Pty Ltd to pay the Deputy Commissioner's costs of the proceeding.

Orders of the court

1. Donnison Developments Pty Ltd be wound up.

2. Steven Nicols of Nicols + Brien Accountants is appointed liquidator of the corporation.

3. The defendant pays the plaintiff’s costs of this proceeding.

Note:

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established

IN THE FEDERAL COURT OF AUSTRALIA
NEW SOUTH WALES DISTRICT REGISTRY	NSD1632 of 2008

JUDGE:	EMMETT J
DATE OF ORDER:	27 MARCH 2009
WHERE MADE:	SYDNEY

BETWEEN:	DEPUTY COMMISSIONER OF TAXATION Plaintiff
AND:	DONNISON DEVELOPMENTS PTY LTD ACN 104 010 200 Defendant
JUDGE:	EMMETT J
DATE:	27 MARCH 2009
PLACE:	SYDNEY

Counsel for the Plaintiff:	Ms EA Collins
Solicitor for the Plaintiff:	Church & Grace
Solicitor for the Defendant:	Licardy, Harris and Co.