Jackson v Deputy Commissioner of Taxation

John Henderson Jackson applied to the High Court of Australia for special leave to appeal from a decision of the Supreme Court of South Australia. The dispute concerned the priority of claims between the Deputy Commissioner of Taxation for unremitted group tax and a receiver for his out-of-pocket expenses and fees. The matter had previously been before the Full Court of the Supreme Court of South Australia on a case stated.

The primary legal issue before the High Court was the extent of property to which a receiver, or a trustee, is required to resort to satisfy the Commissioner's claim for unremitted group tax under section 221P of the *Income Tax Assessment Act 1936* (Cth). This issue arose in the context of a competition between the Commissioner's priority claim for group tax, following a default, and the receiver's claim for his expenses and fees associated with establishing a fund.

The applicant argued that the Supreme Court of South Australia's decision was in line with the Victorian Supreme Court's decision in *Horsburg*, but that an argument not addressed in *Horsburg* had been rejected by the South Australian court. The applicant relied on the principles established in *Card* and confirmed in *Barnes*, which held that a receiver appointed by a mortgagee of a company's assets was not liable to pay a company's debt to the Commissioner under section 221P except out of property of the company that had vested in or passed under the receiver's control. The applicant sought special leave to appeal on the basis that the South Australian court had rejected an argument concerning the extent of the property to which a receiver must resort to meet the Commissioner's claim.