Mark Hackelton T/as Hackeltons Accountants and Advisers v Manbead Pty Ltd & Another [2019] NSWDC 147

District Court New South Wales

Medium Neutral Citation: Mark Hackelton T/as Hackeltons Accountants and Advisers v Manbead Pty Ltd & Another [2019] NSWDC 147 Hearing dates: 6 August 2018 – 8 August 2018; 15 August 2018 Date of orders: 17 April 2019 Decision date: 17 April 2019 Jurisdiction: Civil Before: Hatzistergos DCJ Decision: See [278] Catchwords: TAXES AND DUTIES – Income tax and related legislation – Duties of accountants/tax agents

TORTS – Negligence – Standard of care required by accountants/tax agents – What steps are required to be taken to mitigate against risk of a client paying additional interest penalties and fees as a consequence of submitting tax returns to the ATO where there may be grounds to doubt information given by the client Legislation Cited: Civil Liability Act 2002 (NSW) Income Tax Assessment Act 1936 (Cth) Cases Cited: Astley v Austrust Ltd (1999) 197 CLR 1 Australia Property trust (NSW) v Miller [2015] NSWCA320 Chappel v Hart [1998] HCA 55; 195 CLR 232 BRK (Bris) Pty Ltd v FCT [2001] FCA 164 Effem Foods Pty Ltd v Lake Cumbeline Pty Ltd (1999) 161 ALR 599; [1999] HCA 15 Fuller-Lyons v New South Wales [2015] HCA 31 Garzo v Liverpool/Campbelltown Christian School [2012] NSWCA 151 Henderson v Queensland (2014) 255 CLR 1; [2014] HCA 52 Imbree v McNeilly (2008) 236 CLR 510 Kligowski v Metrobus (1959)101 CLR 298; [1959] HCA 8 Machs v Viscariello [2017] SAFC 172 at 601 Seltsam Pty Ltd v McGuiness (2000) 49 NSWLR 262 South Western Sydney Local health District v Gould [2018 NSWCA 69 State of New South Wales v Fuller-Lyons [2014] NSWCA 424 Thalia Corporation Pty Ltd v Bentleys (SA) Pty Ltd [2013] SASC 172 Ucak v Avante Developments Pty Ltd [2007] NSWSC 3767 Walker v Hungerfords [1987] 44 SASR 532 Warner v Hung, In the matter of Bellpac Pty Limited (Receivers and Managers Appointed) (In Liquidation) (No 2) (2011) 297 ALR 56; [2011] FCA 1123 Texts Cited: N/A Category: Principal judgment Parties: Mark Hackelton T/as Hackeltons Accountants and Advisers (Plaintiff/ Cross-Defendant) Manbead Pty Ltd (First Defendant) Vito Pennimpede (Second Defendant/Cross Claimant) Representation: Counsel: Mr S J Philips (Plaintiff/ Cross-Defendant) Mr C R C Newlinds SC & Mr D Robertson (Defendants/ Cross-Claimants)