On 7 December 2011, we reported on the Tax Laws Amendment (2011 Measures No. 8) Bill 2011. This Bill was aimed at countering phoenix activities by company directors.  However, certain provisions of that Bill had been removed in order to "allow further consultation … to ensure that the proposed amendments do not affect company directors inappropriately in certain circumstances".  That ‘further consultation’ is now underway and the Assistant Treasurer has released an exposure draft of legislation. To explore this material, click here.[Read More]

Posted by James Morse on Friday 27 Apr 2012

In the recent case of Provident Capital Limited v John Virtue Pty Ltd (No 2) [2012] NSWSC 319, the plaintiff lender sought damages from the defendant valuers due to an allegedly negligent valuation of a property. Briefly stated, the facts were that, in December 2004, the defendants valued a certain property at $12 million. The lender loaned funds to a borrower secured by that property; however, the borrower subsequently defaulted. A further valuation was obtained from the valuers in October 2005, after the borrower’s default, which valued the property at between $6.25 million and $7 million. The lender submitted that this was enough to establish negligence. The valuers denied negligence and submitted that the second valuation was irrelevant yet, in any event, there was no inconsistency between the two valuations such that no adverse inference could be drawn against them. [Read More]

Posted by James Morse on Friday 27 Apr 2012