Miller v Chapman [2001] FCA 105

FEDERAL COURT OF AUSTRALIA Miller v Chapman [2001] FCA 105 TAXATION - application challenged taxation assessments on grounds foredoomed to failure - applicant did not press claims at hearing and application dismissed - claims pursued upon advice and at direction of third party - third party joined as party to proceedings to seek costs against it - whether costs should be awarded against party joined - whether costs should be on indemnity basis. CIVIL PROCEDURE - joinder of a party to proceedings with a view to seeking an order for costs against that party on an indemnity basis - presentation and maintenance of claims which had no prospect of success - whether that conduct amounted to an abuse of process - claims presented and maintained upon advice and under direction of party joined - party joined played active part in conduct of proceedings - party joined knew or had good reason to know claims had no prospect of success - whether appropriate to order party joined to pay costs - whether appropriate to order costs payable on indemnity basis. Federal Court of Australia Act 1976 (Cth) s 43 Income Tax Assessment Act 1936 (Cth) s 208 and s 209 Taxation Administration Act 1953 (Cth) ss 4, 6D, 7, 8 and 8A Federal Court Rules O 22 r 2(1)(d) Deputy Commissioner of Taxation v Levick (1999) 168 ALR 383 applied Levick v Deputy Commissioner of Taxation [2000] FCA 674 applied, followed Knight v F P Special Assets Ltd (1992) 174 CLR 178 considered Walton v Gardiner (1992-1993) 177 CLR 378 applied Dooney v Henry 174 ALR 41 applied, followed Poonon Pty Ltd v Deputy Commissioner of Taxation [1999] NSW SC 1121 applied McKewins Hairdressing and Beauty Supplies Pty Ltd (in Liquidation) v Deputy Commissioner of Taxation (2000) 171 ALR 335 followed Money Tree Management Services Pty Ltd v Deputy Commissioner of Taxation (No 1) [2000] SASC 54 referred to Money Tree Management Services Pty Ltd v Deputy Commissioner of Taxation (No 2) [2000] SASC 63 applied Helljay Investments Pty Ltd v Deputy Commissioner of Taxation (1999) 166 ALR 302 referred to Joosse v Australian Securities and Investment Commission (1998) 159 ALR 260 referred to Professional Nominees Pty Ltd v Walsh [1998] Qld CA 5591 referred to