In the Matter of the Corporations Law and in the Matter of Confitt Constructions Pty Ltd (in Liquidation) ACN 010 137 390; Deputy Commissioner of Taxation, Peter Shiels v David Lewis Clout

The Supreme Court of Queensland heard an application from the Deputy Commissioner of Taxation and Peter Shiels, a taxation officer, to appeal a decision made by Registrar White, who ordered the public examination of certain individuals during the winding-up process of Confitt Constructions Pty Ltd. The applicants sought to have the summonses set aside, arguing that complying with the summonses would require them to breach section 16(3) of the Income Tax Assessment Act, which protects officers from being compelled to divulge information obtained in the course of their duties. The court considered the applicants' argument that section 16(3) prohibits them from being required to produce documents or divulge information in court, except when necessary for carrying into effect the provisions of the Income Tax Assessment Act. The court examined several cases that interpreted section 16(3) liberally, finding that when an officer is involved in litigation questioning the validity of an assessment or payment of tax, divulging information in response to a court order does not breach the section. The court concluded that the divulging of information by the applicants during the liquidator's examination would not constitute a breach of section 16(3) if it could be said that what they were doing was "necessary for the purpose of carrying into effect the provisions of" the Income Tax Assessment Act. The application was dismissed with costs.