Deputy Commissioner of Taxation v Widdup (No 3) [2024] FCA 80

Federal Court of Australia

Deputy Commissioner of Taxation v Widdup (No 3) [2024] FCA 80 File number(s): NSD 466 of 2022

Judgment of: WIGNEY J

Date of judgment: 5 February 2024

Date of publication of reasons: 13 February 2024

Catchwords: COSTS – application for indemnity costs by successful applicant against respondents – relevant principles regarding order for costs where there has been no hearing on the merits – where the respondents acted unreasonably in their continued defence of the proceeding and prosecution of their cross-claim – where applicant had effectively succeeded and the respondents had effectively capitulated – award of costs in applicant's favour made in those circumstances – indemnity costs awarded from date that the Full Court dismissed the respondents' application for leave to appeal the dismissal of their interlocutory application – whether lump sum costs order appropriate in the circumstances of the case – lump sum costs order not appropriate in the circumstances of the cases

Legislation: Federal Court of Australia Act 1976 (Cth) s 43 Income Tax Assessment Act 1936 (Cth) sch 2F, s 271-105 Taxation Administration Act 1953 (Cth) Pt IVC, sch 1, s 350-10

Cases cited: Australian Competition and Consumer Commission v Colgate-Palmolive Pty Ltd (No 5) (2021) 151 ACSR 26; [2021] FCA 246 Deputy Commissioner of Taxation v Widdup [2022] FCA 1403 Deputy Commissioner of Taxation v Widdup (No 2) [2023] FCA 377 Latoudis v Casey (1990) 170 CLR 534; [1990] HCA 59 Nichols v NFS Agribusiness Pty Ltd (2018) 97 NSWLR 681; [2018] NSWCA 84 ONE.TEL Ltd v Deputy Commissioner of Taxation (2000) 101 FCR 548; [2000] FCA 270 Re Minister for Immigration and Ethnic Affairs; Ex parte Lai Qin (1997) 186 CLR 622; [1997] HCA 6 Widdup v Deputy Commissioner of Taxation [2023] FCAFC 145