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ARTICLE · 15 NOVEMBER 2025

Tax Debts, Double Dipping And Business Valuations

Barry Nilsson
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This case helpfully lists a number of recent cases in which the court has explored the issue of the potential for 'double dipping'.

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Matt Hempstead
Matt Hempstead
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This case is an important reminder about the potential for tax debt to be ignored by the court and double dipping in assessment of income and business valuations.

This was an unsuccessful appeal where:

  • It was argued that the primary judge double counted business profits as income and where they formed the basis for the valuation.
  • A tax liability was excluded from the balance sheet.

The Tax debt

The appellant sought the inclusion of a $41,339 tax debt as a liability in the property pool.

The primary judge made various findings about the appellant's shortcomings with respect to disclosure and his use of funds. The primary judge stated in relation to the tax debt that 'I accept the liability exists...The [appellant] does not give any evidence to explain why he has not paid his debt and let it accrue interest.' It was also found that the appellant had the funds to meet the debt should he have elected to do so.

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