Caporale v Deputy Commissioner of Taxation

In *Caporale v Deputy Commissioner of Taxation*, Bell J of the Supreme Court of Victoria considered an application by the taxpayer, Mr Caporale, for an order to set aside a default judgment entered against him by the Deputy Commissioner of Taxation. The Deputy Commissioner had sought to recover outstanding income tax liabilities.

The primary legal issue before the Court was whether the taxpayer had established a sufficient defence to the Commissioner's claim to warrant setting aside the default judgment. This involved determining whether the taxpayer had a real prospect of success in arguing that he had not been properly served with the originating process, or alternatively, that he had a defence to the tax assessment itself.

Bell J found that the taxpayer had failed to demonstrate a sufficient defence. While the taxpayer raised arguments concerning the validity of service, these were not substantiated with credible evidence. Furthermore, the taxpayer did not present any arguable grounds to challenge the underlying tax assessment. Consequently, the Court concluded that there was no basis to set aside the default judgment.

The application to set aside the default judgment was dismissed.