Deputy Commissioner of Taxation v Evans

In the matter of *Deputy Commissioner of Taxation v Evans*, Lloyd-Jones J of the Federal Court of Australia considered a creditor's petition presented by the Deputy Commissioner of Taxation against Mr Evans. The dispute arose from Mr Evans' failure to file taxation returns for an extended period, leading to the Deputy Commissioner presenting a creditor's petition. Mr Evans filed a notice stating grounds of opposition to the petition.

The court was required to determine whether Mr Evans was solvent, whether the creditor's petition was invalidated by an alleged incorrect calculation of post-judgment interest, and whether other debts added to the petition also invalidated it. A further issue arose concerning the expiry of the statutory period for extending the life of the petition.

Lloyd-Jones J found that the calculation of post-judgment interest was correct, applying the prescribed rate under s 101 of the *Civil Procedure Act 2005* (NSW) and reg 36.7 of the *Uniform Civil Procedure Rules 2005* (NSW). The court determined that the rate of 10.25% was correctly applied for the relevant period. Consequently, the grounds of opposition relating to the debt being overstated due to incorrect interest calculation were dismissed. However, the court noted that the creditor's petition had lapsed due to the failure to obtain an order extending its life before the statutory period expired, and the slip rule could not be invoked retrospectively to revive it.

Accordingly, the creditor's petition was dismissed.