Spinoccia v Challenger [2010] NSWSC 1310

When a lender sells a property pursuant to a power of sale it has an obligation to pay the GST. In this case the lender made a mistake and paid to the borrower the surplus proceeds of the sale without deducting the GST. It then issued a winding up notice to the borrower in an attempt to recover the money. The borrower sought to have the winding up notice set aside. Because there was no evidence as to whether a GST liability had accrued (was the lender filing monthly or quarterly BAS statements) the Court set aside the statutory demand.

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