Engler v Commissioner of Taxation (No 2) [2003] FCA 411

Engler v Commissioner of Taxation (No 2) [2003] FCA 411

The applicants' statement of claim challenging the validity of the amended assessments for being ultra vires and out of time must be struck out because, on current authorities and the operation of ss 175 and 177 of the Income Tax Assessment Act 1936 (Cth), such challenges cannot proceed except by way of objection or appeal under Pt IVC of the Taxation Administration Act. The only legally permissible basis outside those avenues is an allegation of want of good faith, which has not been properly pleaded here.

Jurisdiction
Australia
Judgment Date
06 May 2003
Procedural Posture
Taxation Judicial Review / Strike Out Application of Statement of Claim
Outcome
Statement of claim struck out with leave to replead limited to want of good faith; applicants to pay respondent's costs.
Legal Topics
['income Tax Assessments' 'ultra Vires' 'good Faith in Administrative Decision Making' 'amended Assessment' 'privative Clauses' 'jurisdictional Error']
['taxation Law' 'administrative Law'] ['income Tax Assessments' 'ultra Vires' 'good Faith in Administrative Decision Making' 'amended Assessment' 'privative Clauses' 'jurisdictional Error']

Case Brief

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Procedural Posture

Taxation Judicial Review / Strike Out Application of Statement of Claim

Legal Issues

  1. 1 ['Whether the notices of amended assessment issued to the applicants were invalid for being ultra vires the respondent and not complying with time limits under s 170 of the Income Tax Assessment Act 1936 (Cth)' 'Whether the applicants are entitled to proceed outside the statutory review and objection processes (Pt IVC of the Taxation Administration Act 1953 (Cth))' 'Whether any plea of want of good faith (bad faith) can be properly pleaded against the Commissioner']

Ratio Decidendi

The applicants' statement of claim challenging the validity of the amended assessments for being ultra vires and out of time must be struck out because, on current authorities and the operation of ss 175 and 177 of the Income Tax Assessment Act 1936 (Cth), such challenges cannot proceed except by way of objection or appeal under Pt IVC of the Taxation Administration Act. The only legally permissible basis outside those avenues is an allegation of want of good faith, which has not been properly pleaded here.

Court Disposition

Statement of claim struck out with leave to replead limited to want of good faith; applicants to pay respondent's costs.

Orders

  • ['The statement of claim filed on 5 March 2003 is struck out.' 'Leave to amend to plead want of good faith (limited to two pages, inclusive of particulars), by 6 July 2003.' "Applicants to pay respondent's costs of the motion of 25 March 2003." "Applicants' motion filed 31 March 2003 is dismissed." "Applicants'...