Gumm v Commissioner of Taxation [2024] FCA 71

Federal Court of Australia

Gumm v Commissioner of Taxation [2024] FCA 71 File number: QUD 428 of 2022

Judgment of: DERRINGTON J

Date of judgment: 14 February 2024

Catchwords: PRACTICE AND PROCEDURE – security for costs – application brought in context of taxation appeal under Part IVC of the Taxation Administration Act 1953 (Cth) – where application brought against individual ordinarily resident overseas – where individual holds no substantial assets in jurisdiction – where there is a risk that individual will not satisfy an order for costs – where there are some defensive elements to the proceedings – where no risk that proceedings will be stifled if an order for security is made – security for costs ordered

Legislation: Customs Act 1901 (Cth) Federal Court of Australia Act 1976 (Cth) Fisheries Management Act 1991 (Cth) Income Tax Assessment Act 1997 (Cth) Taxation Administration Act 1953 (Cth) Federal Court Rules 2011 (Cth) High Court Rules 1928 (Cth) Companies (Western Australia) Code International Trusts Act 1987 (Samoa)

Cases cited: A1 for Maintenance Pty Ltd v Lehal Pty Ltd [2018] FCA 1476 Acohs Pty Ltd v Merck Ltd [1997] FCA 573 Allstate Life Insurance Co v Australia & New Zealand Banking Group Ltd (No 19) (1995) 134 ALR 187 Anglo American Investments Pty Ltd (Trustee) v Commissioner of Taxation [2022] FCA 971 Aurora Networks Pty Ltd v Halbedl [2013] FCA 632 Banki Trading BV v Ausland Export Pty Ltd [2022] FCA 373 Barton v Minister for Foreign Affairs (1984) 2 FCR 463 Batterham v Makeigh (No 2) [2009] NSWCA 314 Bell Wholesale Co Pty Ltd v Gates Export Corporation (1984) 2 FCR 1 Bryan E Fencott & Associates Pty Ltd v Eretta Pty Ltd (1987) 16 FCR 497 Cameron's Unit Services Pty Ltd v Kevin R Whelpton & Associates (Australia) Pty Ltd (1986) 13 FCR 46 Campaign Master (UK) Ltd v Forty Two International Pty Ltd (No 3) (2009) 181 FCR 152 Cheng XI Shipyard v The Ship 'Falcon Trident' [2006] FCA 759 Commissioner of Taxation v Vasiliades (2016) 344 ALR 558 Deltrend Pty Ltd v AST Australia Pty Ltd (1995) 16 ACSR 762 Deputy Commissioner of Taxation v Huang (2021) 273 CLR 429 Derma Pen LLC v Biosoft (Australia) Pty Ltd (Security for Costs) [2022] FCA 885 Donoghue v Federal Commissioner of Taxation [2018] FCA 468 Eades v Endeavour Energy [2018] NSWSC 801 Energy Drilling Inc v Petroz NL (1989) ATPR ¶40-954 Equity Access Ltd v Westpac Banking Corporation (1989) ATPR ¶40-972 Farmitalia Carlo Erba SrL v Delta West Pty Ltd (1994) 28 IPR 336 Fletcher v Commissioner of Taxation (Cth) (1992) 37 FCR 288 Frigger, in the matter of Computer Accounting & Tax Pty Ltd (in Liq) (No 2) [2018] FCA 612 Gain Capital UK Ltd v Citigroup Inc (2015) 114 IPR 307 Green (as liquidator of Arimco Mining Pty Ltd) v CGU Insurance Ltd (2008) 67 ACSR 105 Harpur v Ariadne (No 2) [1984] 2 Qd R 523 Hii v Federal Commissioner of Taxation (No 3) (2016) 238 FCR 304 Hood Barrs v Heriot [1896] 2 QB 375 Hua Wang Bank Berhad v Federal Commissioner of Taxation (2014) 100 ATR 244 Instyle Contract Textiles Pty Ltd v Good Environmental Choice Services Pty Ltd (2009) FCR 360 Korea Shipping Corporation v Lord Energy SA (2018) 267 FCR 660 Logue v Hansen Technologies Ltd (2003) 125 FCR 590 Mabrouk Minerals Pty Ltd v Mabrouk Holdings Ltd [2008] WASC 132 Madgwick v Kelly (2013) 212 FCR 1 Maxim's Caterers Ltd v Magnona Pty Ltd (No 1) [2010] FCA 450 Melbourne Corporation v Commissioner of Taxation [2022] FCA 972 Mercus Pty Ltd v Industrial Energy Pty Ltd (2015) 327 ALR 523 Neilson v Overseas Projects Corporation of Victoria Ltd (2005) 223 CLR 331 Norcast S.ár.L v Bradken Limited [2012] FCA 765 Olbers v Commonwealth [2002] FCA 1269 Olson v Keefe (No 5) [2023] FCA 127 Oswal v Federal Commissioner of Taxation (No 2) (2015) 102 ATR 220 PPK Willoughby Pty Ltd v Baird [2019] NSWCA 48 PS Chellaram & Co Ltd v China Ocean Shipping Co (1991) 102 ALR 321 Quad Consulting Pty Ltd v David R Bleakley and Associates Pty Ltd (Federal Court of Australia, Burchett J, 28 June 1991) Rajski v Computer Manufacture & Design Pty Ltd [1982] 2 NSWLR 443 Re LLUN and Federal Commissioner of Taxation (2017) 107 ATR 211 Ren v Jiang (No 4) [2014] NSWCA 315 Royal Guardian Management Pty Ltd v Nguyen [2015] NSWCA 148 Sanirise Pty Ltd v Darling Harbourside (Sydney) Pty Ltd (Federal Court of Australia, Einfeld J, 15 December 1995) Stanley-Hill v Kool [1982] 1 NSWLR 460 Thiess Watkins White Construction Ltd (in liq) v Witan Nominees (1985) Pty Ltd [1992] 2 Qd R 452 United Commercial Projects Pty Ltd v PHHH Investments No 2 Pty Ltd [2019] VSCA 192 Willey v Synan (1935) 54 CLR 175 GE Dal Pont, Law of Costs (LexisNexis, 5th ed, 2021)