State Bank of New South Wales Ltd v Commissioner of Taxation for The Commonwealth of Australia & Anor [1995] FCA 893

C A T C H W O R D S RESTITUTION - Interest - Moneys held in Commonwealth bank account pending resolution of dispute over liability for sales tax - Agreement by Commissioner to remit additional tax on moneys paid into account and to repay money if dispute resolved in taxpayer's favour - No agreement as to interest - Agreement was that moneys would be held in an account the interest on which was payable to Commonwealth Consolidated Revenue unless the Minister otherwise directed - Dispute resolved in taxpayer's favour - Moneys repaid, but after some delay - Claim by taxpayer for interest during the whole period that the moneys were held in the account - Whether the law of restitution is capable of application - Whether any enrichment of the Commonwealth was unjust, in the circumstances - Whether moneys held pursuant to express trust or resulting trust - Claim for interest on this basis - Whether implied term as to payment of interest - Availability of statutory provision for pre-judgment interest. Audit Act 1901, ss.60, 62 and 62B. Federal Court of Australia Act 1976, s.51A. Sales Tax Assessment Act (No.1) 1930, s.29. STATE BANK OF NEW SOUTH WALES LIMITED v COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA and COMMONWEALTH OF AUSTRALIA NO. NG.379 of 1994 CORAM: WILCOX J PLACE: SYDNEY DATE: 9 NOVEMBER 1995

IN THE FEDERAL COURT OF AUSTRALIA) ) No. NG.379 of 1994 NEW SOUTH WALES DISTRICT REGISTRY) ) GENERAL DIVISION ) BETWEEN: STATE BANK OF NEW SOUTH WALES LIMITED Applicant

AND: COMMISSIONER OF TAXATION FOR THE COMMONWEALTH OF AUSTRALIA First Respondent and COMMONWEALTH OF AUSTRALIA Second Respondent