Legal news
The Federal Court of Australia has made a ruling that a trustee for a bankrupt estate is liable to pay capital gains tax derived from the sale of the bankrupts real property. The judgement of Robson as trustee for the bankrupt estate of Lanning v Commissioner of Taxation [2024] FCA 720 confirmed that the obligations contained in section 254 Income Tax Assessment Act 1997 (Cth) extend to the trustee of a bankrupt estate acting in a representative capacity.
On 1 August 2024, the Magistrates Court of Queensland found Peak Physique Franchisor Group Pty Ltd (Peak Physique) engaged in misleading and deceptive conduct and was in breach of section 18 Australian Consumer Law through its conduct which induced the purchase of one of their premises through representations of ongoing support to the franchisee and the profitability of the franchise purchased.
On 18 January 2023 the Federal Court of Australia handed down its decision in Copeland in his capacity as liquidator of Skyworkers Pty Limited (in Liquidation) v Murace [2023] FCA 14. The decision resulted in Liquidator’s insolvent trading claim against Mr Murace being struck out and costs awarded to the defendant, although the liquidator was then allowed to file a further statement of claim.
Guidance has been provided to liquidators by the Federal Court of Australia in Stone (Liquidator), in the matter of RIC Admin Pty Ltd (in liq) v Mandalinic (No 2) regarding the analysis of financial records required to determine the solvency of a company and what conduct of a director will constitute an unreasonable director related transaction.
In Re Clarinda (liq) [2023] VSC 109, parties sought the leave of the Court to use documents produced in an earlier proceeding to demonstrate the insolvency of the company. Justice Connock ultimately allowed the documents to be reproduced on the basis that the issues in dispute are the same, or substantially the same, and set out the special circumstances which substantiate this reproduction.
On 4 June 2024 the Federal Court of Australia handed down the decision of Fair Work Ombudsman v 85 Degrees Coffee Australia Pty Ltd [2024] FCA. This decision resulted in the Fair Work Ombudsman penalising the Australian franchisor of the 85 Degrees brand $1.44 million for its “systemic failure to ensure compliance within its franchise network” which included underpayments at several of their Sydney franchisee outlets.
On 22 September 2023 the Commonwealth government released the Personal Property Securities Amendment Bill 2023 and amending regulations for public consultation until 17 November 2023. The aim is intended to simplify the use of the law, in particular the registration process, and clarify its application, especially around enforcement priorities.
![Sladen Snippet – Liability of the trustee for a bankrupt estate to pay capital gains tax; Robson as trustee for the bankrupt estate of Lanning v Commissioner of Taxation [2024] FCA 720](https://images.squarespace-cdn.com/content/v1/516cccdae4b0bacecd415c77/1725945894953-XKU0GALRM657O1D6007T/Dispute_Resolution_and_Litigation.jpg)
