Dougal and Dougal (No. 2)

In the matter of *Dougal and Dougal (No. 2)*, Justice Cronin of the Family Court of Australia considered an application by the husband and a response by the wife concerning the distribution of funds held by Bowman and Knox. The dispute centred on the husband's capital gains tax liabilities arising from the disposal of his unit holdings in the M Unit Trust for the 2008 and 2009 financial years.

The court was required to determine how specific sums of money, totalling $134,025 and $85,343, held by Bowman and Knox, should be managed to satisfy the husband's capital gains tax obligations. The court also needed to address the distribution of the remaining funds and establish procedures for the payment of the tax liabilities to the Australian Taxation Office, as well as outline mechanisms for dealing with any potential overpayment or amended assessments.

Justice Cronin ordered that the specified sums be placed in an interest-bearing account to cover the husband's capital gains tax liabilities for the 2008 and 2009 financial years. The balance of the funds was to be distributed according to previous orders. The parties were directed to instruct Bowman and Knox to pay the relevant Australian Taxation Office assessments from these funds. Provisions were made for the distribution of any excess funds after tax payment, and for the husband to notify the wife's solicitor of any actions that might lead to an amended assessment. The wife was granted the right to obtain copies of the husband's tax returns and assessments for the relevant years upon written request. The husband's application filed on 18 November 2008 and the wife's response filed on 11 December 2008 were dismissed, save for the orders made.