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Winding up process and considerations for creditors following an unsatisfied statutory demand

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Winding up process and considerations for creditors following an unsatisfied statutory demand

The most common basis upon which creditors make an application to wind up a company and appoint liquidators is upon the non-compliance with a Creditor’s Statutory Demand. If the debtor company ignores the Creditor’s Statutory Demand and no payment or compromise is reached then the company is presumed insolvent, paving the way to wind up the company.

This article contains an explanation of the steps required when lodging an application for winding up in these circumstances, as well as some helpful tips to navigate the process effectively.

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When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

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When Restructuring Goes Wrong: Lessons from Connelly (liquidator) v Papadopoulos

The Federal Court decision of Connelly v Papadopoulos re TSK Pty Ltd (in liq) highlights some of the implications for professional advisers. directors and officers involved in restructuring of companies and the risks encountered when engaging in restructuring that may be later viewed as asset stripping schemes under the creditor defeating dispositions provisions in the Corporations Act. 

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Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

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Sladen Snippet – Gainer Part 5 – SMSF trustee director remuneration

In this fifth part of our series on the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, we examine Gainer’s request for the Court’s advice as to whether it would be justified to remunerate Mr Heesh for his time and efforts in acting as sole director of Gainer in its role as the corporate trustee for a self managed superannuation fund (SMSF) and, if so, at which rate and whether the remuneration could be for some or all of the work completed by Mr Heesh.

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

Sladen Snippet – Gainer Part 3 – seeking advice to defend trustee removal proceedings

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice that the self managed superannuation fund (SMSF) trustee would be justified in defending the removal proceedings to be brought against it by Mr Bone, the partner of the deceased member of the SMSF.

SMSFs and NALE That Triggers NALI Let's Get Specific

SMSFs and NALE That Triggers NALI Let's Get Specific

Non-arm’s length income (NALI) has been a hot topic of discussion and debate in the SMSF industry in recent years, in particular since the ATO first released their draft ruling on non-arm’s length expenditure (NALE) in 2018 (and its subsequent iterations). Recently, the long debated amendments to NALE provisions were passed in Parliament and received Royal Assent in June 2024.

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Rollovers - practical strategy and compliance insights

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Rollovers - practical strategy and compliance insights

In the current economic landscape, business owners may be considering a restructure, merger, or demerger to adapt, survive, or enable growth. A change in the structure of a business typically involves either the transfer of ownership interests in the entire business or of specific assets of the business. The disposal of an ownership interest in a business or its assets may trigger tax consequences for the business or business owners on capital or revenue account.

One Certainty in Life is Death – Taxes May Have a Little Give

One Certainty in Life is Death – Taxes May Have a Little Give

Whilst the saying, “the two certainties in life are death and taxes”, is still as relevant as ever, the Income Tax Assessment Act 1936 (ITAA 1936) and the Income Tax Assessment Act 1997 (ITAA 1997) does at least provide a bit of leeway on the second one.[1] This session explores various exemptions and concessions available when it comes to tax and deceased estates, including:

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Sladen Legal’s Succession Planning Lawyers Recognised In Doyles Guide Victoria 2024

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Sladen Legal’s Succession Planning Lawyers Recognised In Doyles Guide Victoria 2024

Doyle’s Guide is a comprehensive and independent directory which showcases Australia’s best firms and lawyers. The 2024 listing of leading Victorian Wills, Estates & Succession Planning Law Firms details law firms practising within the areas of Wills, Estates and Succession Planning matters in the Victorian legal market who have been identified by their peers for their expertise and abilities in these areas.

Sladen Snippet – Gainer Part 2 – The death benefit decision

Sladen Snippet – Gainer Part 2 – The death benefit decision

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice to uphold the decision of the self managed superannuation fund (SMSF) trustee to distribute 1/3rd of the death benefits in the SMSF to a partner of the sole surviving SMSF member and 2/3rd to her estate.

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Uber not liable for payroll tax – New South Wales Supreme Court decision

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Uber not liable for payroll tax – New South Wales Supreme Court decision

The New South Wales Supreme Court has that Uber is not liable for payroll tax on payments made to drivers in Uber Australia Pty Ltd v Chief Commissioner of State Revenue [2024] NSWSC 1124.

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

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Bankruptcy: Determining which debts survive or can be recovered from a bankrupt

If you have been declared bankrupt, or are looking to recover debt from an individual or company that has been declared bankrupt, you may be wondering what happens to debts following a declaration of bankruptcy.

This article sets out what debts are and are not recoverable from a bankrupt person, including specific debts which survive bankruptcy and remain recoverable by creditors even after the bankruptcy ends.

Sladen Snippet – Gainer Part 1 – When Court advice may be given to an SMSF trustee

Sladen Snippet – Gainer Part 1 – When Court advice may be given to an SMSF trustee

In the decision of In the matter of Gainer Associates Pty Limited [2024] NSWSC 1138, the Court amongst other things gave advice to uphold the decision of the self managed superannuation fund (SMSF) trustee to distribute 1/3rd of the death benefits in the SMSF to the spouse of the sole surviving SMSF member and 2/3rd to her estate.

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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

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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

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.

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Sladen Snippet – Proposed changes to Australian bankruptcy law

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Sladen Snippet – Proposed changes to Australian bankruptcy law

The Australian government has proposed reforms to the Australian bankruptcy and personal insolvency systems. These reforms aim to ensure the fair application of these systems to those impacted.

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

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Franchising Update: Peak Physique found liable for representations which induced purchase of franchise

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.

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Sladen Snippet - ATO attempts to read down loss in Merchant disqualification decision

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Sladen Snippet - ATO attempts to read down loss in Merchant disqualification decision

The Australian Taxation Office (ATO) has issued a draft Decision Impact Statement (DIS) on the Administrative Appeals Tribunal (AAT) decision of Merchant and Commissioner of Taxation [2024] AATA 1102 (which was decided on 16 May 2024) (Merchant).

 

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Sladen Snippet - New Victorian Short Stay Levy Bill 2024 introduced into Parliament

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Sladen Snippet - New Victorian Short Stay Levy Bill 2024 introduced into Parliament

A new tax will be imposed on both short stay service platforms and others who offer direct bookings of short stay accommodation. The levy will apply to stays less than 28 days but will exclude a homeowner’s principal place of residence or commercial residential premises (i.e. a hotel, motel etc).

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Sladen Snippet - PCG 2024/D2 - PSI and Part IVA

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Sladen Snippet - PCG 2024/D2 - PSI and Part IVA

On 28 August 2024, the Australian Taxation Office (ATO) published Draft Practical Compliance Guideline PCG 2024/D2 (Draft PCG) on Personal services businesses and Part IVA of the Income Tax Assessment Act 1936.