The bitter struggle over a failed partnership that’s pitted two liquidators against each other for seven years is about to go to trial.
But based on comments yesterday to the respective antagonists’ lawyers, the judge who’s hearing the matter is thinking beyond case management and conclaves.
“There will have to be something done in respect of winding up this partnership, including lodging tax returns.” Justice Guy Parker.
In fact, so advanced is NSW Supreme Court judge Guy Parker in his deliberations in respect of the proceedings in Shazbot Pty Ltd V Warner Capital Pty Ltd that what’s really occupying his mind is tax returns.
In effect, Justice Parker was most interested in discussing the implications for the partnership once he has delivered his ruling on whether CRS Insolvency Services principal Anthony Warner owes money to former friend and partner Steve Kugel, and if so in what amount.
His honour told Warner and Kugel’s legal representatives that consideration would need to be given to dealing with the partnership once he’d delivered his decision.
“There will have to be something done in respect of winding up this partnership, including lodging tax returns,” he said.
“Someone’s going to have to go back and work out what were the capital gains or capital losses.
“Someone is going to have to take responsibility for preparing the (tax) returns,” adding that that would also mean being responsible for dealing with any refunds or penalties that might flow from ATO assessments of those returns,” he said.
It was all Kugel and Warner’s lawyers could do to resist shuffling their feet and consulting their wristwatches.
“Who’s going to prepare the returns,” he mused, again.
In a bid perhaps to allay the topic pre-occupying his honour Warner’s lawyer told the court that there had been preliminary correspondence between the parties and the ATO and he was able to reveal that “a case officer” had been appointed and that this might lead the ATO to provide the parties with guidance and information in respect of the question of how the partnership will be wound up.
Given the partnership itself has no assets any amounts owed and penalties to be paid will come from Kugel and Warner’s pockets so we might not see the real fight break out until the judge makes orders as to costs.
Further reading:
Liquidator Overturns Breach Of Fiduciary Duty Finding
Liquidator Appeals Partnership Finding
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