Peter Sleiman Investments Pty Ltd as trustee for the Sleiman Family Trust v Deputy Commissioner of Taxation

The appeal concerned an application by the Deputy Commissioner of Taxation to wind up Peter Sleiman Investments Pty Ltd as trustee for the Sleiman Family Trust due to a judgment debt and GST liability. The primary judge had made a winding up order, but this was stayed pending the determination of an appeal. The GST liability was subsequently discharged, and an application to the Administrative Appeals Tribunal to review the Commissioner's rejection of the taxpayer's objection was imminent. The court was asked to consider whether a further stay of the winding up order should be granted.

The legal issues before the court included whether the winding up order should be further stayed given the imminent Administrative Appeals Tribunal hearing, and whether declarations of trust made by the corporate trustee, which the Commissioner alleged were an alienation of property to defraud creditors, were effective. The court also considered whether vesting orders ought to be made.

The court allowed the appeal in part, confirming the winding up order but extending the existing stay until 31 May 2017, with liberty to apply for further extension or discharge in certain circumstances. The court reasoned that a further stay was warranted due to the imminent AAT hearing, which could materially alter the basis of the winding up order. However, the court refused to grant declaratory relief regarding the effectiveness of the declarations of trust, finding an absence of a proper contradictor and noting that such declarations might impact any future liquidator. The court also dismissed the cross-appeal.