03 Dec 09 Judgments entered against separate taxpayers based on alternative assessments - Grimaldi (No 9)
The Federal Court (Graham J) has, on the application of the Commissioner, entered summary judgment against a taxpayer for $25,561,078.93, notwithstanding that judgment had already been entered against another taxpayer for $36,341,461.73 on the basis of an alternative assessment. The Court said, at para 7:
"Whilst there will inevitably be cases in which it would be oppressive for the Commissioner to seek to enforce payment of the full amount due under a number of notices of assessment issued by the Commissioner on an alternative basis to different taxpayers in respect of the same income, such a possibility does not preclude the Commissioner from securing judgments against different taxpayers in respect of the same income. What would be oppressive would be for the Commissioner to seek to execute such judgments so as to enforce payment of the full amount due under the several judgment debts. Double recovery by the Commissioner would be oppressive (see FCT v Moorebank Proprietary Limited  HCA 29; (1988) 165 CLR 55."
FCT v Grimaldi (No. 9)  FCA 1404 (Federal Court, Graham J, 27 November 2009).
For a copy of the decision, go here