Priority Matters Pty Ltd v Deputy Commissioner of Taxation

Priority Matters Pty Ltd (the applicant) sought to set aside a statutory demand issued by the Deputy Commissioner of Taxation (the respondent). The demand was largely comprised of estimated tax liabilities under Division 268 of Schedule 1 to the *Taxation Administration Act 1953* (Cth). The applicant contended that the supporting affidavit filed by the respondent was insufficient to prove the existence of the underlying taxation liability. The matter came before the Court of Appeal of the Supreme Court of New South Wales, comprising Ward P, Macfarlan JA, and Griffiths AJA.

The primary legal issue before the Court was whether the respondent's supporting affidavit, which relied on estimated tax liabilities, adequately satisfied the evidentiary burden required to support a statutory demand under the *Corporations Act 2001* (Cth). Specifically, the Court had to determine if the affidavit sufficiently proved that the alleged debt, being the estimated tax liability, was genuinely owed by the applicant.

The Court reasoned that the *Corporations Act* requires a supporting affidavit to verify the facts sufficient to prove the debt. While the respondent had issued a statutory demand based on estimated liabilities, the affidavit supporting the demand did not provide sufficient evidence to establish that the applicant was liable for those estimated amounts. The Court noted that the respondent had not provided evidence demonstrating how the estimates were calculated or why they were considered accurate. Consequently, the Court found that the respondent had failed to discharge its evidentiary onus.

The Court of Appeal dismissed the summons seeking leave to appeal, with costs.