Gregory Paul Saville Trading As China Sourcing Services and Hallmarc Construction Pty Ltd (ACN 071 149 758)

The proceeding concerned an application by Gregory Paul Saville, trading as China Sourcing Services, and Hallmarc Construction Pty Ltd (ACN 071 149 758) for an order to set aside a statutory demand issued by the Commissioner of State Revenue. The Commissioner had issued the statutory demand in relation to an alleged debt arising from a land tax assessment.

The primary legal issue before Nettle J was whether the statutory demand should be set aside on the basis that there was a genuine dispute about the existence of the debt. This dispute arose from the applicants' contention that the land tax assessment was invalid due to a failure by the Commissioner to provide them with adequate notice of the assessment and an opportunity to be heard before its finalisation, as required by administrative law principles.

Nettle J reasoned that the applicants had raised a sufficient question of fact or law regarding the validity of the land tax assessment to establish a genuine dispute. His Honour noted that the Commissioner's failure to provide the applicants with notice of the proposed assessment and an opportunity to make submissions before issuing it could render the assessment invalid. Consequently, the Commissioner had not demonstrated that the debt was undisputed, a prerequisite for the validity of a statutory demand.

The court ordered that the statutory demand be set aside.