Snell v Deputy Commissioner of Taxation

Snell appealed to the Court of Appeal of the Supreme Court of New South Wales against a decision of the primary judge concerning director penalty notices issued by the Deputy Commissioner of Taxation. The dispute centred on the Deputy Commissioner's attempts to recover amounts withheld from employee wages and salaries that had not been remitted to the Commissioner.

The Court was required to determine whether the Deputy Commissioner was obliged to issue a further director penalty notice when the amount claimed changed after the initial notice was given, and whether recovery proceedings could be commenced only within a reasonable time after the expiry of such a notice. Additionally, the Court considered what constituted "participation in management" for the purposes of establishing a defence under section 269-35 of the *Taxation Administration Act 1953* (Cth), and whether this defence needed to be established for the entire period from the "due day" until at least the expiry of the director penalty notice.

The Court held that there was no statutory requirement for the Deputy Commissioner to issue a further director penalty notice if the amount claimed changed after the initial notice, nor was there a requirement to commence recovery proceedings within a reasonable time after the expiry of the notice. Regarding the defence of justifiable non-participation in management, the Court affirmed that it must be established for the entire period from the due day of the unpaid amount until at least the expiry of the director penalty notice.

The appeal was dismissed, and Snell was ordered to pay the costs of the Deputy Commissioner.