Mandalinic v Stone (Liquidator)

Mandalinic v Stone (Liquidator) involved a dispute between Mr Mandalinic, a director of a company in liquidation, and the liquidator of that company, who was acting on behalf of the Commissioner of Taxation. The Commissioner had commenced proceedings against Mr Mandalinic to recover tax-related liabilities, including director penalties under Division 269 of the Taxation Administration Act 1953 (Cth). The central legal issue was whether a company director could file an affidavit under section 268-40 of the Act to reduce or revoke an estimate of liability issued to the company, and if such a director could do so after the company had been wound up. The primary judge had ruled against Mr Mandalinic's contention that he could file such an affidavit in the context of director penalty proceedings.

The court considered the statutory language of section 268-40 and its context, including the purpose of the Tax Administration Act to facilitate the recovery of unpaid taxes. It held that the term "you" in section 268-40(1) referred to the entity that was the subject of the estimate notice, which in this case was the company, not the director. The court reasoned that the legislative history and context indicated that the provision was intended to preserve the legal effect of the former regime, where only the person liable could file an affidavit. The court further noted that sections 268-40 and 268-90 were to be read together, reinforcing the conclusion that "you" referred to the company. Consequently, the court dismissed the appeal and denied Mr Mandalinic's attempt to reduce or revoke the estimate through an affidavit filed in director penalty proceedings. The court also set out the procedure for any application for costs related to the appeal.