Deputy Commissioner of Taxation v Terramyer Pty Ltd (in liq)

Terramyer Pty Ltd, a construction company, was wound up after receiving a statutory demand from the Commissioner of Taxation. The sole director and shareholder of Terramyer, Mr Dowling, applied to terminate the winding up, arguing that the company had paid the debt in full and that continuing the winding up would cause him significant detriment. The Commissioner of Taxation did not oppose the application. The primary legal issue before the court was whether the winding up should be terminated in light of the fact that the debt had been paid, and whether continuing the winding up would cause Mr Dowling significant detriment. The court found that the debt had indeed been paid and that continuing the winding up would cause Mr Dowling significant detriment as it would prevent him from continuing his work as a registered building practitioner. The court noted that winding up a company can have serious consequences for its directors and shareholders, and that the court should be slow to allow a winding up to continue if there is a realistic prospect of the company paying its debts. The court therefore exercised its discretion to terminate the winding up, with effect from 4:00pm on 24 September 2013. The court also directed that the liquidator file and serve any further material in relation to his claim for fees and disbursements by 4:00pm on 24 September 2013, and that the plaintiff and applicant file and serve any material in opposition to the liquidator’s claim for fees and disbursements (if any) by 12 noon on 25 September 2013.