The District Court of WA has upheld a director’s penalty notice (DPN) issued to the director of a failed company.
The company had failed to meet its obligations to remit withholding tax to the Commissioner over a 7-month period between 1 July 2009 and 31 March 2011. The Court said the director did not give or call any evidence and submitted he was not liable to pay the amounts because:
- the court lacked jurisdiction on a number of constitutional bases;
- he had statutory defences to the claim;
- the debt he owed had been extinguished by reason of the issue by him of a promissory note, payable to the Deputy Commissioner of Taxation, pursuant to the Bills of Exchange Act 1909 (Cth).
After reviewing the matter, the Court dismissed the director’s claims, finding his defences “were without merit”, and held that the evidence established that he had a tax-related liability in the sum of $212,626.
(DCT v Aitken [2015] WADC 18, WA District Court, Bowden DCJ, 25 February 2015.)
[LTN 43, 5/3/15]