Steele v Deputy Commissioner of Taxation

The High Court of Australia considered an appeal by Mr Steele against a decision of the Deputy Commissioner of Taxation. The dispute concerned the validity of a notice of assessment issued by the Deputy Commissioner to Mr Steele, and whether that notice was effective to impose a tax liability.

The central legal issue before the High Court was whether the notice of assessment, which was issued to Mr Steele's former solicitors, was validly served in accordance with the relevant provisions of the *Income Tax Assessment Act 1936* (Cth) and the *Acts Interpretation Act 1901* (Cth). Specifically, the Court had to determine whether service on the solicitors constituted effective service on Mr Steele, given that he had previously notified the Commissioner of his change of address and had not authorised his former solicitors to accept service on his behalf.

The Court reasoned that for a notice of assessment to be validly served, it must be sent to the taxpayer's last known address or place of business. While service on a legal practitioner can be effective in certain circumstances, it requires express or implied authority from the taxpayer to accept such service. In this instance, the Court found that Mr Steele had not provided such authority, and the notice had not been sent to his last known address. Consequently, the notice of assessment was deemed to be invalidly served and therefore ineffective to create a tax liability.

The High Court allowed the appeal, setting aside the notice of assessment and the orders of the court below.