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Garnishee notices: FCT v Park
Published on 01 Apr 13 by "THE TAX SPECIALIST" JOURNAL ARTICLE
Where certain types of tax debts and related amounts are owed by a taxpayer, the Commissioner is empowered, under Div 260 of Sch 1 to the Taxation Administration Act 1953, to send a written notice to a third party who owes money to the taxpayer requiring that third party to pay the Commissioner the lesser of the tax debt and the available money. The recent decision of the Full Court of the Federal Court in FCT v Park highlights just how powerful this “garnishee” notice procedure is, with the potential to disrupt commercial transactions. The case highlights the need for even secured creditors to be wary when the Commissioner employs the garnishee notice procedure.
This article examines the reasoning in the case and the implications for mortgagees and taxpayers when the Commissioner issues a garnishee notice to the purchaser of a property.
Author profile
Dr Philip Bender ATI
Dr Philip Bender, ATI is a barrister at the Victorian Bar. He is the author of Bender’s Australian Stamp Duties, published by the Tax Institute. He acts in Federal and State taxation, superannuation, and trusts and estates matters for taxpayers and revenue authorities. In the trusts area, he has acted in many taxation disputes involving trusts issues, and has acted in many trusts matters involving, amongst other topics, trust deed and will interpretation, alleged breaches of trust; trustee removal applications; judicial advice; charitable trusts; and superannuation death benefits disputes. - Current at 06 March 2023
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