Deputy Commissioner of Taxation v Huang

The Deputy Commissioner of Taxation sought an interlocutory freezing order against Mr Huang and his wife, Jiefang Huang, to prevent them from disposing of their assets in Australia or overseas. The Commissioner had issued tax assessments to Mr Huang and his wife, which they had not paid. The court needed to decide if there was a good arguable case for the freezing order, if there was a risk the judgment may not be satisfied, and if it was in the interests of justice to grant the order. The court found that the Commissioner had a good arguable case and that there was a danger that Mr Huang would dissipate his assets. The court accepted the evidence of Mr Deng, who was an expert in tax evasion, that Mr Huang had a significant tax liability and there was an intention to avoid paying tax. The court also found that there was a risk that Mr Huang would remove his assets from Australia to frustrate the court's process. The court then considered whether it was in the interests of justice to grant the freezing order. The court found that it was appropriate to grant the order to prevent the dissipation of assets pending the hearing of the action. The court made a freezing order against Mr Huang and his wife, prohibiting them from disposing of or diminishing the value of their assets up to the value of the tax liability. The court also granted leave to serve the orders on the Huangs in China in accordance with the Hague Convention. The court adjourned the proceedings for case management and reserved the costs of the application.