Deputy Commissioner of Taxation v Bobos

The Deputy Commissioner of Taxation brought proceedings against Bobos in the Federal Circuit Court, seeking payment of unpaid taxes. Bobos did not respond to the proceedings, and a default judgment was entered against him. Over two and a half years later, Bobos applied to set aside the default judgment. The primary issue before the court was whether the application to set aside the default judgment should be granted, considering the significant delay in making the application and the absence of an arguable defence. The court considered that the judgment was entered regularly and that Bobos had not established an arguable defence to the claim. Additionally, Bobos’s conduct, including the payment of taxes after the default judgment was entered, did not support a finding that he had a bona fide defence. The court held that Bobos had failed to provide an adequate explanation for the delay in making the application or for his failure to file a defence in the original proceedings. The application to set aside the default judgment was dismissed, and Bobos was ordered to pay the Commissioner's costs.