Moltoni and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal (AAT) considered an appeal by Mr Moltoni against a decision by the Commissioner of Taxation to refuse to revoke a departure prohibition order (DPO). The dispute arose from amended assessments and a shortfall penalty imposed on Mr Moltoni for the income year ended 30 June 2007, which were linked to a US$21 million payment made by Maruti Holdings Pte Limited to Sinclair Strategies Limited. The Commissioner's decision to impose the DPO was based on concerns regarding the applicant's tax liabilities and the circumstances surrounding this payment, which was also the subject of litigation in the British Virgin Islands.

The Tribunal was required to determine whether the present proceedings lacked utility due to Mr Moltoni's status as a bankrupt, and consequently, whether the DPO should be revoked. Specifically, the court had to consider the interplay between the Commissioner's powers under Part IVA of the *Taxation Administration Act 1953* (TAA) to issue a DPO and the powers of a trustee in bankruptcy under the *Bankruptcy Act 1966* to control a bankrupt's travel. The central question was whether the Tribunal's power to review the Commissioner's decision was constrained by the trustee's authority.

The Tribunal reasoned that the TAA and the *Bankruptcy Act* created separate, albeit overlapping, regimes for restricting the travel of individuals with tax liabilities. It found no legislative hierarchy indicating that the powers of the trustee in bankruptcy must be exercised deferentially to, or that merits review of the Commissioner's DPO should be limited by, the potential review of the trustee's decisions. The Tribunal concluded that the powers were not identical and that the Parliament had created a "belt and braces" approach. Therefore, the Tribunal rejected submissions that the proceedings lacked utility and that the DPO was otiose.

The Tribunal affirmed the Commissioner's decision of 1 July 2019 to refuse to revoke the departure prohibition order.