KPMG (a firm) v Commonwealth of Australia & Anor

The High Court of Australia heard an appeal concerning a dispute between KPMG (a firm) and the Commonwealth of Australia and the Australian Taxation Office (ATO). The core of the dispute involved the ATO's assessment of certain tax liabilities against KPMG, which KPMG challenged.

The central legal issue before the High Court was whether the ATO had acted unlawfully in its conduct towards KPMG, specifically in relation to the disclosure of confidential information obtained during an investigation into KPMG's tax affairs. KPMG alleged that the ATO had breached its duty of confidentiality and acted in bad faith by disclosing information to third parties, including the media and other government bodies, without proper authorisation or justification.

Hayne J, delivering the judgment, considered the scope of the ATO's powers and obligations under relevant taxation legislation and general administrative law principles. The Court examined the circumstances under which the ATO could disclose information and the legal tests for establishing a breach of confidentiality or an abuse of power. The reasoning focused on the interpretation of statutory provisions governing information disclosure by the Commissioner of Taxation and the common law duties owed by public authorities. The Court ultimately found that the ATO's actions did not constitute an unlawful disclosure of confidential information, nor did they demonstrate bad faith in the manner alleged by KPMG.