Graywinter Management Pty Ltd v Deputy Commissioner of Taxation

In the Federal Court of Australia, Graywinter Management Pty Ltd and Graywinter Properties Pty Ltd, represented by applicants, sought an extension of time to comply with statutory demands issued by the Deputy Commissioner of Taxation. The respondents, represented by the Deputy Commissioner of Taxation, opposed the application. The court was required to determine whether the statutory provisions allowed for a further extension of time once the initial s459G application had been determined and an extension had already been granted.

The court examined the statutory provisions and relevant case law to understand the scope of the court's power to extend the time for compliance. The applicants argued that the power to extend time could be exercised even after the s459G application had been determined, while the respondents contended that the power to extend time was only available while the s459G application was still on foot. The court considered the High Court decision in David Grant and Co Pty Ltd v Westpac Banking Corporation and found that the power to extend time could indeed be exercised even after the s459G application had been determined, provided the application for extension was made within the compliance period.

In this case, the court found the circumstances to be exceptional enough to warrant a further extension of time. The applicants had made arrangements to pay the tax debt through a valid and subsisting judgment, and the only obstacle to immediate payment was the stay of execution pending an appeal. The court concluded that granting the extension would not unduly impede the Deputy Commissioner in the prosecution of their rights and would allow for the payment of the debt, subject to the outcome of the appeal. The court granted the extension until 21 days after the hearing and determination of the appeal in VG546 of 1996 or until further order.

The court orders that the period for compliance with the statutory demands, the subject of the orders of Jenkinson J on 22 November 1996, be extended until 21 days after the hearing and determination of the appeal in VG546 of 1996, or until further order.