Commissioner of Taxation v Bosanac [2016] FCA 448

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Bosanac [2016] FCA 448 File number: WAD 291 of 2015

Judge: MCKERRACHER J

Date of judgment: 29 April 2016

Catchwords: ADMINISTRATIVE LAW – whether notices of assessment affected by jurisdictional error – whether conscious maladministration established – whether grounds of jurisdictional error closed – whether a corrupt exercise of statutory power or the exercise of that power with deliberate disregard to the scope of the power in the assessment process – relevant state of mind of the decision-maker TAXATION – whether notices of amended assessment affected by conscious maladministration – treatment of unexplained income as ordinary income – allegedly incorrect tax treatment of properties sold on adjacent land – relevance of failure to file income tax returns and actively participate in tax audit DISCOVERY – relevance of objection to producing documents pursuant to notice to produce in relation to claim of conscious maladministration – whether documents sought a fishing exercise CONSTITUTIONAL LAW – constitutional right to contestability of amended tax assessments – whether summary judgment makes the amended assessments incontestable and outside the power of the Commonwealth where likely to cause bankruptcy – role of trustee in bankruptcy in contesting an assessment PRACTICE AND PROCEDURE – summary judgment – whether reasonable prospects of success – summary judgment granted TAXATION - application for stay of judgment delivery pending objection decision - respondents seek leave to adduce fresh evidence of imminent objection decision - whether evidence of imminent objection decision would impact ruling as to conscious maladministration - orders in relation to Mrs Bosanac not entered to enable parties to seek to vary the judgment pursuant to r 39.04 Federal Court Rules 2011 (Cth)