The ATO has released a Decision Impact Statement on the Full Federal Court’s decision in Akers as a joint foreign representative of Saad Investments Company Limited (in Official Liquidation) v DCT [2014] FCAFC 57.
In that case, Cayman Island liquidators were unsuccessful in seeking to defeat a Deputy Commissioner of Taxation’s claim to recover a local tax debt from the Australian assets of a Cayman company in liquidation. This was notwithstanding the existence of orders made under the Model Law on Cross-Border Insolvency of the United Nations Commission on International Trade Law (UNCITRAL) recognising the Cayman liquidation.
The High Court refused the liquidator’s special leave to appeal the decision.
The ATO said the Full Federal Court’s decision and the subsequent dismissal of the special leave application support the ATO view that Australian Courts have the power to make orders under the Model Law to protect the Commissioner’s ability to recover revenue liabilities from assets located in Australia in circumstances where the revenue liability would not be admitted in a foreign liquidation.
[LTN 241, 12/12/14]