On 17 April 2015, the Commissioner of Taxation successfully sought special leave to appeal the decision in Commissioner of Taxation v Australian Building Systems Pty Ltd (in liq)  FCAFC 133 to the High Court.
The Full Federal Court has ruled that in the absence of a notice of assessment, liquidators will not be personally liable for failing to retain sufficient funds for an anticipated CGT liability. Refer to our updates of 3 March 2014 and 10 October 2014 for further information.
The High Court is unlikely to hear the matter until next year, meaning that liquidators’ CGT obligations remain unclear in the near term. Accordingly, insolvency practitioners should approach CGT issues with caution.