Rawson Finances Pty Limited v Deputy Commissioner of Taxation

Rawson Finances Pty Limited and BCI propounded a case in the Federal Court of Australia challenging decisions of the Deputy Commissioner of Taxation not to defer the time by which assessed tax would be due and payable and not to defer recovery action. The parties sought an order to set aside these decisions, claiming they were unreasonable or otherwise flawed. The central issue was whether the Deputy Commissioner's decisions were subject to review under the Administrative Decisions (Judicial Review) Act 1977 (Cth). The court found that the Deputy Commissioner’s decisions not to defer the time for payment of tax and to defer recovery action were not reviewable because they did not constitute a ‘decision to which this Act applies’ as defined in section 3 of the ADJR Act. The court also found that the decision to issue a creditor’s statutory demand was not subject to review as it was not a ‘decision’ under the ADJR Act. Even if the decisions were reviewable, the court held that the Deputy Commissioner had exercised his discretion reasonably, taking into account the relevant considerations and applying the correct legal principles. The court found that the Deputy Commissioner had properly exercised his discretion not to defer the tax payment and recovery action based on the taxpayer's financial position and the potential impact on the general interest charge. The court dismissed all of the applicants' claims with costs.