PROFESSIONAL NEGLIGENCE - INCOME TAX - Second and third plaintiffs retain defendant to prepare income tax returns - defendant advises that profits derived from a development are assessable income arising from the carrying on of a profit-making scheme under s.25A(1) ITAA - whether advice is negligent.
PROFESSIONAL NEGLIGENCE - TAX FRAUD - Second and third plaintiffs agree with defendant that he will prepare false accounts for development venture and insert false figures in their tax returns - contract for performance of illegal act by defendant and in furtherance of illegal purpose of second and third plaintiffs - whether an action for breach of contractual duty of care will lie.
PROFESSIONAL NEGLIGENCE - ACCOUNTANT - Whether second and third plaintiffs retained defendant as accountant - whether a term of the retainer that defendant would do all things necessary to procure third party to issue special rights units in a unit trust - term would be impossible of performance - no such contract found - no such term could be implied.
COSTS - ILLEGALITY - Defendant succeeds on one of three issues by proving that the contract sued upon was for the commission of offences under the Income Tax Assessment and the Taxation Administration Act 1953 - discretion as to whether to award the costs of that issue to the defendant - it would be contrary to public policy to permit the defendant to recover costs of that issue - defendant's costs reduced by one-third.
Case Details
Citation[2001] NSWSC 501
CourtNSWSC
JurisdictionNew South Wales
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