In Australian Building Systems Pty Ltd (in liquidation) v Commissioner of Taxation [2014] FCA 116, Justice Logan was asked to clarify the circumstances where a capital gains tax liability will be
imposed on liquidators by section 254 of the Income Tax Assessment Act 1936. Thomsons Lawyers acted for the company and its liquidators in seeking to resolve this topical question. The decision answered a critical point around when the obligation will be imposed on liquidators, but left to another day the question as to how the tax liability, once imposed, is to be treated by liquidators as part of a liquidation, despite this question being extensively argued by the parties.