Fastbet Investments Pty Ltd v Deputy Commissioner of Taxation (No 3)

The case of Fastbet Investments Pty Ltd v Deputy Commissioner of Taxation (No 3) involved Fastbet Investments seeking a discovery order against the Commissioner of Taxation. Fastbet sought discovery of documents to understand the decision-making process of Mr Burns, an officer of the Australian Taxation Office (ATO), regarding a tax assessment. The Federal Court was tasked with determining whether Fastbet's discovery application was justified and whether it met the criteria for such an order. The Commissioner opposed the application, arguing that it was a fishing expedition and did not align with the procedural requirements for discovery.

The court had to decide whether Fastbet's application for discovery was relevant and necessary for resolving the issues in the case. The Commissioner argued that Fastbet had not provided any evidence to support its claims and had made the application at a late stage in the proceedings. Additionally, the Commissioner pointed out that Fastbet had failed to discuss the issue of discovery with the Commissioner's legal advisers and had not attempted to resolve the issues in dispute before making the application. The court considered whether Fastbet had demonstrated that the discovery was necessary for the just resolution of the proceeding and whether it had complied with the relevant procedural rules.

The court found that Fastbet's application for discovery was not justified. The court considered that the application was likely a fishing expedition, as Fastbet had not provided any evidence to support its claims and had indicated it might seek to amend its Originating Application based on the discovered material. The court also noted that Fastbet had not attempted to resolve the issues in dispute with the Commissioner and had not complied with the relevant procedural rules, including the requirement to discuss the issue of discovery with the other party and to seek agreement on a protocol. The court concluded that Fastbet had failed to establish a basis for exercising the court's discretion in its favour.

The court dismissed the relief sought in sub-paragraphs 1(d) and (e) of the application filed on 16 August 2018 and adjourned the remainder of the application to 10.15am on 31 October 2018 for further hearing. Costs were reserved.