FEDERAL COURT OF AUSTRALIA Walters v Commissioner of Taxation (No. 2) [2007] FCA 1403 TAXATION AND REVENUE – resolution of the question of costs arising out of Walters v Commissioner of Taxation [2007] FCA 1270 DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS v COMMISSIONER OF TAXATION QUD8 OF 2006 COMMISSIONER OF TAXATION v DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS QUD10 OF 2006 GREENWOOD J 7 SEPTEMBER 2007 BRISBANE IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QUD8 OF 2006 ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY SENIOR MEMBER BJ MCCABE BETWEEN: DAVID JAMES WALTERS First Applicant RHONDDA ISOBEL WALTERS Second Applicant AND: COMMISSIONER OF TAXATION Respondent IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QUD10 OF 2006 ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY SENIOR MEMBER BJ MCCABE BETWEEN: COMMISSIONER OF TAXATION Applicant AND: DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS Respondents JUDGE: GREENWOOD J DATE OF ORDER: 7 SEPTEMBER 2007 WHERE MADE: BRISBANE THE COURT ORDERS THAT: 1. David James Walters and Rhondda Isobel Walters pay the costs of the Commissioner of Taxation of and incidental to Applications QUD8 of 2006 and QUD10 of 2006. Note: Settlement and entry of orders is dealt with in Order 36 of the Federal Court Rules. IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QUD8 OF 2006 ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY SENIOR MEMBER BJ MCCABE BETWEEN: DAVID JAMES WALTERS First Applicant RHONDDA ISOBEL WALTERS Second Applicant AND: COMMISSIONER OF TAXATION Respondent IN THE FEDERAL COURT OF AUSTRALIA QUEENSLAND DISTRICT REGISTRY QUD10 OF 2006 ON APPEAL FROM THE ADMINISTRATIVE APPEALS TRIBUNAL CONSTITUTED BY SENIOR MEMBER BJ MCCABE BETWEEN: COMMISSIONER OF TAXATION Applicant AND: DAVID JAMES WALTERS AND RHONDDA ISOBEL WALTERS Respondents JUDGE: GREENWOOD J DATE: 7 SEPTEMBER 2007 PLACE: BRISBANE REASONS FOR JUDGMENT 1 On 20 August 2007, the Court delivered judgment in Walters v Commissioner of Taxation [2007] FCA 1270 in which the Court dismissed the Application by David Walters and Rhondda Walters (QUD8 of 2006) and upheld the Application by the Commissioner of Taxation (QUD10 of 2006). Because the parties had not made submissions in relation to costs, the question of costs was reserved to be determined. David Walters and Rhondda Walters provided short submissions on 27 August 2007 and the Commissioner of Taxation provided short written submissions on 3 September 2007. 2 David Walters and Rhondda Walters accept that there are no special circumstances which would alter the burden of the usual order for costs. Since the Commissioner of Taxation has been successful in both Applications, the Order of the Court will be that David James Walters and Rhondda Isobel Walters are to pay the costs of the Commissioner of Taxation of and incidental to each Application. I certify that the preceding two (2) numbered paragraphs are a true copy of the Reasons for Judgment herein of the Honourable Justice Greenwood. Associate: Dated: 7 September 2007 Counsel for the Applicant: Mr D Russell QC and Mr P G Bickford Solicitor for the Applicant: Cleary Hoare Solicitors Counsel for the Respondent: Mr G J Davies QC and Mr D Harding Solicitor for the Respondent: Ms Lynch, Australian Government Solicitor Date of Submissions by David Walters and Rhondda Walters: 27 August 2007 Date of Submissions by the Commissioner of Taxation: 3 September 2007 Date of Judgment: 7 September 2007