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Australian High Court to hear test case

Publish date: 09 June 2005
Issue Number: 1353
Diary: Legalbrief Today
Category: Bankruptcy

An Australian High Court has taken on a case that could have implications for bankrupts who give valuable assets to family and trusts before going bust.

The Australian reports the case involves barrister John Cummins, who did not file a tax return for 45 years and during that time transferred some property, worth $1.5m, to his wife and into a family trust. Cummins\'s bankruptcy trustees have now successfully sought leave to appeal a decision that blocked the pursuit of his wife Mary, since separated, and the family trust. Two High Court judges allowed the trustees to appeal a split decision by the full Federal Court, which held that the trustees had failed to prove Cummins intended to transfer the assets to frustrate his creditors. Full report in The Australian

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