The Deputy Commissioner of Taxation (DCT) sought an ex parte interlocutory application for a freezing order against Mr James Raptis, a building developer, and two of his related entities. The Federal Court made orders in the form provided to the Court, which froze assets of more than AUD 80 m including specific bank accounts and real property.
The DCT issued default notices of assessments against the taxpayers alleging that they had not properly declared their taxable income or failed to file tax returns. The taxpayers’ failure to properly declare their taxable income is alleged to relate to Mr Raptis’ long association with Mr Vanda Gould, an accountant who is no longer a registered tax agent, who the ATO investigated in relation to tax avoidance arrangements involving offshore service providers.
Issues in relation to freezing orders against the taxpayers, freezing orders against third parties, and service in Australia and outside of Australia were considered.
Florence Chen (led by P Looney QC) appeared for the Applicant, instructed by K & L Gates.
The judgment is published here.