Michael Peter Stiassny, Grant Robert Graham, Forestry Corporation of New Zealand Limited (in receivership), Citic New Zealand Limited (in receivership), CNI Forest Nominees Limited and Bank of New Zealand v Commissioner of Inland Revenue - SC 21/2012

Civil Appeal – Goods and services tax – Restitution – Recovery of a GST payment paid by the first appellants to the respondent in the mistaken belief that they were personally liable for the debt – Whether secured creditors own the proceedings of sale of assets that are subject to registered fixed charges at the time of sale, if they are sold for less than the secured debts to which the charges relate – Whether the first appellants were entitled to apply the proceeds of sale of the Central North Island Forestry Partnership (CNIFP) assets to the payment of GST amount, in priority to the claims of the secured creditors – Whether the GST payment was “ debtor-initiated” in terms of s 95 of the Personal Property Securities Act 1999 (PPSA) – Whether s 95 of the PPSA barred the recovery of the GST payment if it was made under a mistake – Whether the second and third appellants have a cause of action in restitution for the recovery of their mistaken payment – Whether the first appellants have a cause of action in restitution for the recovery of their mistaken payment – Whether the security trustees have a cause of action in restitution for the recovery of the mistaken payment made by the first appellants to the Commissioner of Inland Revenue –  Whether “good faith” is a pre-requisite for a defence of the provision of good consideration to the payer to a claim for the recovery of a payment made under a mistake – Whether the first appellants are entitled to recover GST payment pursuant to their tax challenge cause of action pursuant to the Tax Administration Act 1994.SC 775/2010   [2012] NZCA 93