Australia, July 24 -- New South Wales Land and Environment Court issued text of the following judgement on June 24:

1. By Amended Notice of Motion and Amended Statement of Charge ("ASC"), the Plaintiff, the Deputy Commissioner of Taxation ("DCT"), seeks orders that the Seventh Defendant, Belfield Development Pty Ltd ("Belfield"); the Eighth Defendant, NNG Holdings Pty Ltd ("NNG"); the First Respondent, NG Sydney Corporation Pty Ltd ("NG Sydney"); and the Tenth Defendant, Mr Nahi Gazal ("Mr Gazal") are each guilty of contempt of court.

2. By its ASC filed on 6 May 2025, the DCT pleads facts on which the charges rely. The gravamen of the DCT's charges of contempt are that, immediately prior to 24 December 2020, the date when freezing orders were first made against Belfield and NNG, Belfield maintained an account with the Australian and New Zealand Banking Corporation ("ANZ") which was in credit in the amount of $1,492,455.59; NNG maintained an account which was in credit in the amount of $3,324,740.28; and, after the freezing orders were made, Mr Gazal, in multiple transactions which were largely falsely characterised as payment of ordinary business expenses, withdrew the funds in those accounts and dissipated them. The details of the withdrawals from the ANZ accounts are pleaded, at length, in paragraphs [18]-[417] of the ASC. The DCT did not press a further charge (ASC [419]-[421]) alleging non-disclosure by Mr Gazal of certain personal property in his disclosure affidavit sworn pursuant to the freezing orders.

3. The contempt application was originally listed for hearing in November 2024 but the hearing was adjourned, on the DCT's application supported by Mr Gazal, until May 2025. Mr Gazal did not lead evidence or make submissions in accordance with orders then made by the Court in respect of that hearing, initially contending that he had sought Legal Aid and was appealing the refusal of his application and then contending that he had had developed issues that affected his capacity. On the first hearing day on 6 May 2025, Mr Gazal brought an unsuccessful application to vacate the hearing; the DCT read and tendered its evidence, and I then adjourned the matter to allow Mr Gazal a further opportunity to lead evidence and make submissions. Again, Mr Gazal did not do so and, when the matter was again listed on 27 May 2025, he again unsuccessfully sought again to vacate the hearing date and when that application failed, did not seek to make submissions. Mr Gazal was represented at the hearing by Counsel in respect of his unsuccessful applications to vacate each of the hearing dates, and by his solicitor in respect of the substance of the proceedings. Mr Gazal did not admit any aspect of the DCT's case and has put the DCT to proof of the entirety of that case.

4. By way of background, Mr Gazal is the sole director of each of the companies in issue and is the sole shareholder of NNG and NG Sydney, and NNG is the sole shareholder of Belfield. Belfield was trustee for the Belfield Development Unit Trust; NNG was trustee for NNG Family Trust; and each of Belfield, NNG and NG Sydney were not registered for GST. The evidence establishes that Mr Gazal controlled each of the company's bank accounts.

*Rest of the document can be viewed at: (https://www.caselaw.nsw.gov.au/decision/1979f66cae5d117b2ca8211f)

Disclaimer: Curated by HT Syndication.