The Court affirmed a sequestration order on de novo review, holding that the debtor failed to establish 'other sufficient cause' under s 52(2)(b) of the Bankruptcy Act. While the Court accepted that a novel argument regarding director penalties for a corporate trustee's liabilities (as distinct from the company's own liabilities) was genuine and arguable, this accounted for less than $150,000 of a $1.7 million debt. The Court declined to go behind the judgment debt with respect to default tax assessments, applying Anglo American to hold that the conclusive evidence provision in s 350-10(1) of the TAA applied in full to the County Court debt recovery proceedings, and finding that the debtor had not provided sufficient evidence that foreshadowed objections could reduce the tax liability below the $10,000 statutory minimum. Unexplained delay of nearly five years in challenging the default assessments weighed against exercising the discretion.
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