Commissioner of Taxation v Pratt Holdings Pty Ltd [2003] FCA 6

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Pratt Holdings Pty Ltd [2003] FCA 6 PRACTICE AND PROCEDURE – application for access pursuant to s 263 of the Income Tax Assessment Act 1936 (Cth) – solicitor-client privilege – where corporate-client sought legal advice concerning taxation consequences of losses incurred by an entity within corporate-client's group – where, upon the recommendation of its solicitors, corporate-client engaged accounting firm to value losses and report upon transactions relevant to losses – where corporate-client refused access and claimed that documents were subject to legal professional privilege – certain documents prepared by solicitors – certain documents prepared by accounting firm – whether documents protected by privilege – dominant purpose test – whether accounting firm an agent of corporate-client for the purposes of advice privilege – whether corporate-client waived privilege in respect of documents produced by its solicitors when it provided them to the accounting firm – whether voluntary disclosure by corporate-client inconsistent with the maintenance of confidentiality Income Tax Assessment Act 1936 (Cth), s 263 The Daniels Corporation International Pty Ltd v Australian Competition & Consumer Commission [2002] HCA 49 referred Esso Australia Resources Ltd v Commissioner of Taxation (Cth) (1999) 201 CLR 49 applied Baker v Campbell (1983) 153 CLR 52 discussed R v Special Commissioner, Ex parte Morgan Grenfell & Co Ltd [2002] 3 All ER 1 referred Commissioner of Taxation (Cth) v Citibank Ltd (1989) 20 FCR 403 applied Grant v Downs (1976) 135 CLR 674 discussed Waugh v British Railways Board [1980] AC 521 discussed Mitsubishi Electric Australia Pty Ltd v Victorian WorkCover Authority (2002) 4 VR 332 referred Great Atlantic Insurance Co v Home Insurance Co [1981] 2 All ER 485 referred Guardian Royal Exchange Assurance of New Zealand Ltd v Stuart [1985] 1 NZLR 596 discussed Wheeler v Le Marchant (1881) 17 ChD 675 discussed Jones v Great Central Railway Company [1910] AC 4 referred Trade Practices Commission v Sterling (1979) 36 FLR 244 referred Morlea Professional Services Pty Ltd v South British Insurance Co Ltd (27 September 1984, Federal Court of Australia, unreported) discussed Nickmar Pty Ltd v Preservatrice Skandia Insurance Ltd (1985) 3 NSWLR 44 discussed Leader Westernport Printing Pty Ltd v IPD Instant & Duplicating Pty Ltd (1988) 5 ANZ Ins Cas 60-856 discussed Macedonia Pty Ltd v Federal Commissioner of Taxation (1987) 87 ATC 4,565 discussed Galway v Constable [2002] 2 Qd R 146 distinguished Australian Rugby Union Ltd v Hospitality Group Pty Ltd (1999) 165 ALR 253 discussed Re Highgrade Traders Ltd [1984] BCLC 151 discussed Price Waterhouse (a firm) v BCCI Holdings (Luxembourg) SA [1992] BCLC 583 discussed Mudgway v New Zealand Insurance Co Ltd [1988] 2 NZLR 283 discussed C-C Bottlers Ltd v Lion Nathan Ltd [1993] 2 NZLR 445 discussed United States v Kovel 296 F 2d 918 (1961) discussed United States v Schwimmer 892 F 2d 237 (2nd Cir. 1989) referred Grand Jury Proceedings (under seal) v United States 947 F 2d 1188 (4th Cir. 1991) referred Susan Hosiery Limited v Minister of National Revenue [1969] 2 Ex C.R. 27 discussed Lyell v Kennedy (No 2) (1883) 9 AC 81 referred Re Sokolov (1968) 70 D.L.R. (2d) 324 referred Belgravia Investments Ltd v Canada [2002] FCJ No 870 discussed Mann v Carnell (1999) 201 CLR 1 applied