COMMISSIONER OF TAXATION V PARK  FCAFC 122 (31 AUGUST 2012)
Recently, the Full Court of the Federal Court in Queensland held that the Commissioner of Taxation (“ATO”) was entitled to receive certain moneys in priority to claims by a second mortgagee pursuant to a garnishee notice (Section 260-5 of Schedule 1 of the Taxation Administrations Act 1953 (Cth)) which it served on the purchasers.
This case demonstrates that a second mortgagee could lose its priority (in terms of receiving full payment of all moneys payable to it under the terms of its mortgage) when it allows a mortgagor to sell the mortgaged property; especially when the mortgagor owes moneys to the ATO.
The Supreme Court of Queensland
The State of Queensland (Department of Environment and Resource Management)
Office of State Revenue (Qld)
New South Wales
The Supreme Court of New South Wales
The State of New South Wales (Land and Property Information)
Office of State Revenue (NSW)
Australasian Legal Information Institute (AustLII)
Australian Securities and Investments Commission (ASIC)