Thinking | 28 April 2015
Liquidators not personally liable for CGT prior to issue of notice of assessment – Commissioner of Taxation granted special leave to appeal to the High Court
On 17 April 2015, the Commissioner of Taxation successfully sought special leave to appeal the decision in Commissioner of Taxation v Australian Building Systems Pty Ltd (in liq)  FCAFC 133 to the High Court.
The Full Federal Court has ruled that in the absence of a notice of assessment, liquidators will not be personally liable for failing to retain sufficient funds for an anticipated CGT liability. Refer to our updates of 3 March 2014 and 10 October 2014 for further information.
The High Court is unlikely to hear the matter until next year, meaning that liquidators’ CGT obligations remain unclear in the near term. Accordingly, insolvency practitioners should approach CGT issues with caution.
You might be also interested in...
Insolvency & Restructuring | 30 Apr 2015
Take all reasonable care – the Victorian Court of Appeal confirms its approach when reviewing sales of charged assets conducted by receivers
The Court of Appeal of the Supreme Court of Victoria in Boz One Pty Ltd v McLellan has recently confirmed that it will adopt a commercial approach to assessing the conduct of receivers.
Insolvency & Restructuring | 10 Mar 2015
Trust isn’t easy – the High Court confirms that a trust will not be readily inferred in contractual commercial arrangements
Secured creditors and liquidators are often met with the assertion that funds or property owned by a company that would otherwise be available for distribution to secured or unsecured creditors, are actually held on trust for someone else.