The NSW Supreme Court has granted the Commissioner summary judgment against husband and wife taxpayers in a partnership for outstanding GST debts and penalties totalling over $2m.
The taxpayers were partners in a partnership that conducted 2 businesses. The partnership lodged BASs on behalf of the businesses for the 2006 to 2009 years. Following an audit of the partnership’s financial affairs, the Commissioner determined that GST had been over-claimed for the periods 1 August 2006 to 30 September 2009. Subsequently, the Commissioner issued notices of assessment of the net amount of GST and associated penalty notices to the taxpayers (who were jointly and severally liable for the debt being partners in the partnership).
The taxpayers raised 3 grounds of defence for resisting the summary judgment which were rejected by the Supreme Court. Broadly, the Court held that any remedy the taxpayers may have is under Pt IVC of the TAA and not in the Court. It said that all of the taxpayers’ arguments were not justiciable in the Court. Accordingly, the Supreme Court granted the Commissioner summary judgment against the taxpayers for the outstanding GST debts and associated penalties.
(DCT v Robertson [2013] NSWSC 795, Supreme Court of NSW, Hidden J, 18 June 2013.)
[LTN 117, 20/6/13]