SPI PowerNet Pty Ltd v Commissioner of Taxation (No 2) [2014] FCA 356

FEDERAL COURT OF AUSTRALIA

SPI PowerNet Pty Ltd v Commissioner of Taxation (No 2) [2014] FCA 356 Citation: SPI PowerNet Pty Ltd v Commissioner of Taxation (No 2) [2014] FCA 356

Parties: SPI POWERNET PTY LTD v COMMISSIONER OF TAXATION

File number: VID 330 of 2012

Parties SP AUSTRALIA NETWORKS (TRANSMISSION) LTD v COMMISSIONER OF TAXATION File number: VID 331 of 2012

Judge: PAGONE J

Date of judgment: 25 March 2014

Catchwords: COSTS – application for costs on an indemnity basis –Calderbank offer – whether failure to accept offer was unreasonable – where acceptance of offer would have required compromise of public rights and duties by offeree – where proceeding raised complex and novel questions – where offeree had independent expert opinion to support position – whether sufficient to rely upon taxpayer's burden of proof – overarching obligations to be taken into account in determining whether failure to accept offer unreasonable – reasons of decision maker for failing to accept offer relevant to determining whether failure to accept offer unreasonable – question of whether failure to accept offer unreasonable is to be determined at point in time at which offer was open for acceptance – court not to take into account matters arising at a later date which could not reasonably have borne upon decision maker's state of mind in considering offer.

Legislation: Federal Court of Australia Act 1976 (Cth) s 37M, 37N

Cases cited: Clark v Federal Commissioner of Taxation (2010) 83 ATR 555, [120], [160] Hazeldene's Chicken Farm Pty Ltd v Victorian WorkCover Authority (No 2) (2005) 13 VR 435, 441 NMFM Property Pty Ltd v Citibank Ltd (No II) (2001) 109 FCR 77 Software AG (Australia) Pty Ltd v Racing and Wagering Western Australia (2009) 175 FCR 121, 138 [82]