Deputy Commissioner of Taxation v Wang

The case of Deputy Commissioner of Taxation v Wang involved the Deputy Commissioner of Taxation as the applicant seeking an ex parte application for freezing orders against the respondents, Wang and Nimbus Financial. The dispute arose from concerns that Wang and Nimbus Financial might dissipate assets to avoid satisfying a prospective judgment in a tax-related matter. The case was heard in the Federal Court of Australia.

The primary legal issues before the court were whether the applicant had a good arguable case, whether there was a real danger that a prospective judgment might not be satisfied, and whether the balance of convenience favoured the making of a freezing order. The court needed to determine if the applicant met the threshold for a good arguable case, which requires a reasonably arguable case on both legal and factual matters. Additionally, the court had to assess if there was a risk of asset dissipation that would frustrate the court's process and ensure the applicant would receive the fruits of any judgment.

The court found that the applicant had a good arguable case based on the evidence presented, and the risk of asset dissipation was sufficiently high to warrant the issuance of a freezing order. The court emphasised the need for caution in granting such orders but concluded that the balance of convenience favoured the making of a freezing order to prevent asset dissipation. The court exercised its discretion to grant the ex parte application, issuing the freezing orders against the respondents.

The court ordered that leave be granted to the applicant to file the originating application and related documents. Service of these documents was to be effected through substituted service methods, including delivery to specified addresses and email addresses, and notification by text message. The court also issued orders pursuant to rules 7.32 and 7.33 of the Federal Court Rules 2011, attaching these in annexures to the reasons. The matter was listed for further directions on 3 December 2020, and liberty to apply to the duty judge was granted on 24 hours' notice.