Stiassny and Graham v Commissioner of Inland Revenue

[2012] NZSC 32

IN THE SUPREME COURT OF NEW ZEALAND

SC 21/2012
[2012] NZSC 32

BETWEEN  MICHAEL PETER STIASSNY AND GRANT ROBERT GRAHAM
First Appellants

AND  FORESTRY CORPORATION OF NEW ZEALAND LIMITED (IN RECEIVERSHIP)
Second Appellant

AND  CITIC NEW ZEALAND LIMITED (BVI) (IN RECEIVERSHIP)
Third Appellant

AND  CNI FOREST NOMINEES LIMITED
Fourth Appellant

AND  BANK OF NEW ZEALAND
Fifth Appellant

AND  COMMISSIONER OF INLAND REVENUE
Respondent

Court:             Blanchard, William Young and Chambers JJ

Counsel:         M R Crotty for First, Second and Third Appellants
R G Simpson for Fourth Appellant
J McKay for Fifth Appellant
D J Goddard QC and H W Ebersohn for Respondent

Judgment:      8 May 2012

JUDGMENT OF THE COURT

ALeave to appeal is granted.

BThe approved grounds are:

(i)whether the GST payment was a “debtor-initiated payment” in terms of s 95 of the Personal Property Securities Act 1999 so as to confer priority to the Commissioner over any claim to those moneys by any respondent;

(ii)whether any of the appellants can recover the amount of GST so paid from the Commissioner on the basis that it was paid by the receivers under a mistaken belief that they were personally liable to pay it or on any other basis.

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REASONS

1. The approved grounds are intended to encompass all the issues raised in paragraph 5 of the submissions of the appellants in support of their leave application.  The respondent has advised that it will support the judgment below on the alternative ground that the receivers were in fact personally liable to make the GST payment.  Leave is not required for that to be done.

Solicitors:
Russell McVeagh, Auckland for First, Second and Third Appellants
Bell Gully, Auckland for Fourth Appellant
Chapman Tripp, Auckland for Fifth Appellant
Crown Law Office, Wellington for Respondent