Chief Executive Officer of Customs v Labrador Liquor Wholesale Pty Ltd (No 2)

Labrador Liquor Wholesale Pty Ltd was prosecuted by the Chief Executive Officer of Customs for breaches of customs and excise laws. The breaches included evading excise duty, false labelling, and providing misleading information. The case was heard in the Federal Court of Australia. The key legal issues were the appropriate penalties for the offences, the relevance of the amount evaded, the application of the totality principle, and the availability of a global penalty for multiple offences. Additionally, the court considered the appropriateness of default imprisonment and the duration thereof.

The court examined the seriousness of the offences and the amount of duty evaded, which was significant. It concluded that the total penalty should reflect the totality of the offending and not merely the amount evaded. The court also found that a global penalty was appropriate given the common facts of the multiple offences. The ability to pay was deemed irrelevant due to the mandatory minimum penalties prescribed by statute. The court further held that default imprisonment should be considered only if the pecuniary penalty was insufficient to deter or punish the offender.

The court determined that the pecuniary penalties should be substantial, reflecting the gravity of the offences. Default imprisonment was considered appropriate due to the serious nature of the breaches. The court ordered a fine of $450,000 and a three-month default imprisonment term, which was suspended for two years. The court also noted the inconsistency between the State Act and the federal Penalties and Sentences Act 1992 in the context of default imprisonment in customs prosecutions. The final orders included the imposition of the fine, the suspended default imprisonment term, and other ancillary orders as per the schedule.