Federal Court holds that Tax Commissioner can recover tax debts of Cayman Islands Company from its Australian assets

The Federal Court recently held that it was appropriate to use the Model Law implemented under the Cross-Border Insolvency Act to enable the Commissioner of Taxation to recover funds held in Australia before remitting them to the Cayman Islands liquidator. An appeal by the liquidators is pending.

In July this year, Justice Rares delivered his decision in Ackers (as joint foreign representative) v Saad Investment;' in the matter of Saad Investments Co Ltd (in official liq) [2013] FCA 738. Saad was incorporated in the Cayman Islands and was wound up by the Grand Court of the Cayman Islands in 2009.

Saad's assets included ASX listed securities worth millions. Saad was not registered as a foreign company under the Corporations Act 2001 (Cth) and conducted no business in Australia. The Commissioner of Taxation was the only...