Tag Archives: garnishee notices

ILN Today Post

Garnishee Notice upheld: Payment to the ATO in priority to the mortgagee’s rights

In brief

On 31 August 2012, the Full Court of the Federal Court found that a garnishee notice requiring proceeds from the sale of a property the subject of two registered mortgages, be first used to discharge the mortgagor’s tax debt, in priority to the mortgagee’s rights.

The case illustrates that mortgagees who leave distressed mortgagors to sell may be faced with an additional obstacle at settlement – particularly when the mortgagor has outstanding tax debts. More…

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