Commissioner of Taxation v Rowntree (No 3) [2021] FCA 306

Federal Court of Australia

Commissioner of Taxation v Rowntree (No 3) [2021] FCA 306 File number(s): NSD 655 of 2014

Judgment of: RARES J

Date of judgment: 12 March 2021

Catchwords: TAXATION – determination of civil penalties pursuant to s 290-50(4) in Sch 1 of Taxation Administration Act 1953 (Cth) – where each respondent found to be promoter of a tax exploitation scheme in contravention of s 290-50(1) – where s 290-5(a) provided object of Div 290 to deter tax avoidance and tax evasion schemes – where promoter driven by greed and profit – whether very substantial penalty oppressive on bankrupt promoter – whether failure to express contrition or remorse capable of being aggravating factor in determination of penalty – totality principle

Legislation: Bankruptcy Act 1966 (Cth) s 82(3) Customs Act 1901 (Cth) Taxation Administration Act 1953 (Cth) ss 290-5(a), 290-50(1), 290-50(3)–(5), 290-65(1)(a)(i), 290-65(1)(b)(i) Labuan Business Activity Tax Act 1990 (Malaysia) ss 4, 7(1)

Cases cited: Academy Cleaning & Security Pty Ltd v Deputy Commissioner of Taxation (2017) 106 ATR 184 Commissioner of Taxation (Cth) v Arnold (No 2) (2015) 324 ALR 59 Commissioner of Taxation v Bogiatto (No 2) [2021] FCA 98 Commissioner of Taxation v Ludekens (No 2) (2016) 103 ATR 532 Commissioner of Taxation v Rowntree (No 2) [2021] FCA 268 Commissioner of Taxation v Rowntree [2020] FCA 1322 Commonwealth v Director, Fair Work Building Industry Inspectorate (2015) 258 CLR 482 James v Dunkel (1959) 101 CLR 298 Kuhl v Zurich Financial Services Pty Ltd (2011) 243 CLR 361 L Vogel and Son Pty Ltd v Anderson (1967-1968) 120 CLR 157 Markarian v The Queen (2005) 228 CLR 357 Mill v The Queen (1988) 166 CLR 59 NW Frozen Foods Pty Ltd v Austraian Consumer and Competition Commission (1996) 71 FCR 285 Pearce v The Queen (1998) 194 CLR 610