Castagna v R; Agius v R [2019] NSWCCA 114

Court of Criminal Appeal Supreme Court New South Wales Medium Neutral Citation: Castagna v R; Agius v R [2019] NSWCCA 114 Hearing dates: 3–4 April 2019 Date of orders: 05 June 2019 Decision date: 05 June 2019 Before: Bathurst CJ; Macfarlan JA; Gleeson JA Decision: (1) Appeals allowed. (2) Convictions of each appellant on Counts 1, 2 and 13 be quashed and, in lieu thereof, a verdict of acquittal be entered. Catchwords: INCOME TAX – Ordinary income – agreement to make payments to a company in exchange for supply of services by a consultant – company did not operate any business other than the supply of services by the consultant – whether payments were ordinary income derived by the consultant

CRIME – Appeals – Appeal against conviction – New trial – prosecution advanced argument on appeal not raised at trial to support conviction– significant elapse of time since offences and likely delay in new trial – whether appropriate to make an order for a new trial Legislation Cited: Criminal Appeal Act 1912 (NSW) Criminal Code (WA) Income Tax Assessment Act 1936 (Cth) Income Tax Assessment Act 1997 (Cth) Judiciary Act 1903 (Cth). Cases Cited: Agius v The Queen (2013) 248 CLR 601; [2013] HCA 27 Alexander v Commissioner of Taxation (2014) 99 ATR 773; [2014] FCA 1161 Associated Alloys Pty Ltd v ACN 001 452 106 Pty Ltd (in liq) (2000) 202 CLR 588; [2000] HCA 25 Baker v Federal Commissioner of Taxation (1989) 20 ATR 1706 Baker v Federal Commissioner of Taxation (1989) 20 ATR 798 Bayly v Federal Commissioner of Taxation (1977) 15 SASR 446 Business & Research Management Pty Ltd (In liquidation) v Federal Commissioner of Taxation (2008) 173 FCR 204; [2008] FCA 1652 Byrnes v Kendle (2011) 243 CLR 253 Commissioner of Australian Federal Police v Hart (2019) 262 CLR 76; [2018] HCA 1 Coulls v Bagot's Executor and Trustee Co Ltd (1967) 119 CLR 460 Equuscorp Pty Ltd v Glengallen Investments Pty Ltd (2004) 218 CLR 471; [2004] HCA 55 Federal Coke Co Pty Ltd v Federal Commissioner of Taxation (1977) 15 ALR 449 Federal Commissioner of Taxation v Bamford (2010) 240 CLR 481 Federal Commissioner of Taxation v Mochkin (2003) 127 FCR 185 Federal Commissioner of Taxation v Montgomery v (1999) 198 CLR 639; [1999] HCA 34 Fowler v Federal Commissioner of Taxation (2008) 167 FCR 425; [2008] FCA 528 Gerakiteys v The Queen (1984) 153 CLR 317 Hayes v Federal Commissioner of Taxation (1956) 96 CLR 47 Jiminez v The Queen (1992) 173 CLR 572; [1992] HCA 14 King v The Queen (1986) 161 CLR 423 Korda v Australian Executor Trustees (SA) Ltd (2015) 255 CLR 62; [2015] HCA 6 Liedig v Federal Commissioner of Taxation (1994) 50 FCR 461 MacFarlane v Commissioner of Taxation (1986) 13 FCR 356 McEvoy v The Belfast Banking Co Ltd [1935] AC 24 Olsson v Dyson (1970) 120 CLR 365 Osborne v R; R v Osborne [2017] NSWCCA 11 Parker v The Queen (1997) 186 CLR 494; [1997] HCA 15 Peate v Federal Commissioner of Taxation (Cth) (1964) 111 CLR 443 Re Schebsman [1944] Ch 83 Reuter v Commissioner of Taxation (1993) 111 ALR 716 Reuter v Commissioner of Taxation (1993) 93 ATC 5030 Richardson v Federal Commissioner of Taxation (1932) 48 CLR 192 Rotherwood v Commissioner of Taxation (1996) 64 FCR 313 Scott v Commissioner of Taxation (1935) 35 SR (NSW) 215 Scott v Federal Commissioner of Taxation (1966) 117 CLR 514 The Queen v Taufahema (2007) 228 CLR 232; [2007] HCA 11 Trident General Insurance Co Ltd v McNiece Bros Pty Ltd (1988) 165 CLR 107 Tupicoff v Federal Commissioner of Taxation (1984) 4 FCR 505 Union Fidelity Trustee Co of Australia Ltd & Mayfield v Federal Commissioner of Taxation (1969) 119 CLR 177 Vandepitte v Preferred Accident Insurance Corporation of New York [1933] AC 70 Western Gold Mines NL v Commissioner of Taxation (WA) (1938) 59 CLR 729 Wilson v Darling Island Stevedoring and Lighterage Company Ltd (1956) 95 CLR 43 Zobory v Federal Commissioner of Taxation (1995) 95 ATC 4251 Category: Principal judgment Parties: Anthony Castagna (first appellant) Robert Agius (second appellant) The Crown (respondent) Representation: Counsel: T Game SC with S White SC and T Epstein (first appellant) G Bashir SC with C Ensor (second appellant) P McDonald SC with M Hirschhorn, A McGrath and R Raffell (respondent)