Arcade Badge Embroidery Co Pty Ltd v Deputy Commissioner of Taxation

(2005) 157 ACTR 22; [2005] ACTCA 3

ACT Court of Appeal

Built by Barristers,
For Australian Law.

See how it works

Interrogate

Catchwords

1. Corporations
2. › Statutory demand
3. › Application to set aside
4. › Supporting affidavit
5. › Minimum requirements
6. › Whether affidavit stating genuine dispute and reference to government review met minimum content requirements
7. › Corporations Act 2001 (Cth), ss 459E, 459G(3), 459H(1)(a)
1. Corporations
2. › Statutory demand
3. › Application to set aside
4. › Setting aside on other grounds
5. › Creditor reneging on agreement to withdraw demand
6. › Whether conduct of creditor constituted 'some other reason' to set aside demand
7. › Corporations Act 2001 (Cth), s 459J(1)(b)
1. Corporations
2. › Statutory demand
3. › Application to set aside
4. › Supplementary affidavits
5. › Whether affidavit filed outside 21-day period may expand on grounds raised within period
6. › Corporations Act 2001 (Cth), s 459G(2)

Quick Take

A supporting affidavit under s 459G(3) that goes beyond a bare assertion of a genuine dispute by identifying a specific basis for the dispute (such as a pending government review) meets the minimum content requirements, even if it does not detail all the evidence. A creditor's agreement to withdraw a statutory demand, subsequently reneged upon, constitutes 'some other reason' to set aside the demand under s 459J(1)(b), particularly where the creditor is a government entity expected to observe the highest standards in its dealings. The Court left open the question of whether relief is available where a creditor's representation induces a company not to apply to set aside the demand at all within the 21-day period.