Facts: An Australian national who lived and worked in the US died there. At his death, there was a substantial amount of unpaid US income tax. The US tax authority took proceedings in the US tax court, which awarded the US a substantial amount with respect to the unpaid US income tax ($1.149M). Ms Jamieson (daughter of the deceased) was administering her father’s estate (i.e. she was the executrix) in NSW and sought a declaration from the NSW Supreme Court that she could distribute the estate of her father without the payment of this revenue debt.
Issue: Did executrix need to pay the US income tax?
Held: No, it did not need to be paid. The debt is irrecoverable in proceedings in an AU court, as it was a foreign revenue debt (applying Government of India v Taylor). Ms Jamieson was therefore entitled to the relief that she sought.