Barkworth Olives Management Ltd v Deputy Commissioner of Taxation

[2010] QCA 80

Queensland Court of Appeal

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Interrogate

Catchwords

1. Taxation
2. › Income Tax
3. › Trust Income
4. › Liability of Trustee
5. › Assessment under s 99A
6. › Whether s 254(1)(e) limits trustee's personal liability where assessed under Division 6 of Part III
7. › Income Tax Assessment Act 1936 (Cth), ss 99A, 204, 254(1)(e)
1. Taxation
2. › Income Tax
3. › Assessment
4. › Conclusive effect of notices of assessment
5. › Whether s 254(1)(e) qualifies operation of s 177 and s 204
6. › Income Tax Assessment Act 1936 (Cth), ss 175, 177(1), 204
1. Statutory Interpretation
2. › Conflicting provisions within same Act
3. › General and specific provisions
4. › Whether general provision in Part VIII qualifies specific provisions in Division 6 of Part III
5. › Project Blue Sky Inc v Australian Broadcasting Authority (1998) 194 CLR 355
1. Practice and Procedure
2. › Summary judgment
3. › Whether real prospect of successful defence
4. › Uniform Civil Procedure Rules 1999 (Qld), r 292

Quick Take

Section 254(1)(e) of the ITAA 1936 does not limit a trustee's personal liability for tax where the trustee is assessed under a provision in Division 6 of Part III (such as s 99A) which expressly provides for the trustee's liability, at least where the same person remains trustee during the period the income was derived and up to the date liability accrues under s 204. The cases limiting trustee liability to assets in hand (Brown, Stapleton, Patterson) are confined to situations where a representative was appointed after the relevant income was derived. The Commissioner is entitled to summary judgment for the full assessed amount against such a trustee, notwithstanding the trustee's claim not to have received the assessed income.