*DCT v De Simone – Summary judgment for tax debt partially refused – despite conclusivity provisions – because it was arguable an AAT decision was not properly applied [31]

In a decision handed down on 21 December 2012, but only released by the Victorian Supreme Court on Tue 29.1.2013, a Deputy Commissioner has been mostly successful in obtaining summary judgment against a taxpayer for tax debts. However, the Court allowed the taxpayer’s defence in relation to one year.

The Deputy Commissioner sought summary judgment for unpaid income tax, penalties and interest for the 1999 to 2001 income years. In the statement of claim as at 18 May 2011, the Deputy Commissioner sought around $597,000 (together with interest from that date and costs). At the hearing on 19 March 2012, the Deputy Commissioner claimed as at 16 March 2012, the sum of around $603,000. By letter dated 9 May 2012, the Deputy Commissioner reduced the amount sought as of 4 May 2012 to around $599,000.

The Court granted the taxpayer leave to defend in respect of the 1999 tax year, because it considered there was an arguable defence in that an AAT decision had not been properly applied. However, it granted summary judgment for the other years subject to various conditions, including that the statement of claim be amended to reflect the amount now sought (which may have changed since May 2012).

(DCT v De Simone [2012] VSC 644, Victorian Supreme Court, Lansdowne AsJ, 21 December 2012.)

[LTN 18, 29/1/13]