Deputy Commissioner of Taxation v Clear Blue Developments Pty Ltd (No. 2)

In the Federal Court of Australia, the Deputy Commissioner of Taxation (Deputy Commissioner) sought to have Clear Blue Developments Pty Ltd wound up pursuant to the Corporations Act 2001 (Cth). The Deputy Commissioner was successful in this application. The Deputy Commissioner then sought costs of the winding up application, including professional costs. The Deputy Commissioner was represented in the proceeding by an officer of the Australian Taxation Office (ATO). The Court was required to determine whether the Deputy Commissioner was entitled to an order for professional costs. The Court was also required to determine whether any officer of the ATO was the "solicitor on the record" for the Deputy Commissioner and whether the Federal Court Rules had been complied with in that regard. The Court held that the Deputy Commissioner was not entitled to an order for professional costs because there was no evidence that the officer who appeared for the Deputy Commissioner was entitled to practise in Queensland. Furthermore, the Court found that the Federal Court Rules had not been complied with because there was no solicitor on the record. The Court ordered that the Deputy Commissioner's costs be fixed in the sum of $1,248.86 and paid to him by the liquidator from the property of the company. The Court ordered that the supporting creditor's costs be fixed in the sum of $1,481 and paid to it by the liquidator from the property of the company on the footing that the supporting creditor is entitled to the same priority in respect of those costs as it would enjoy if the supporting creditor had been the plaintiff in the winding up application.