Melkman v Commissioner of Taxation

The Federal Court of Australia in New South Wales considered a case involving an application for interlocutory relief to restrain the respondents from accessing the applicants' 1981 trust account records. The applicants, a firm of solicitors, sought to prevent the Deputy Commissioner of Taxation and a taxation officer, the respondents, from accessing their trust account records. The respondents sought access under section 263 of the Income Tax Assessment Act 1936. The applicants raised issues related to legal professional privilege and the burden of the access request, arguing that the decision to access the records was made without proper consideration of these factors. The applicants also argued that the decision violated principles of natural justice by not providing an opportunity to be heard and that the access was not authorized by the relevant statute.

The court considered whether the decision to grant access was lawful and whether there was a serious question to be tried regarding the respondents' failure to consider relevant factors such as legal professional privilege and the burden on the applicants. The applicants claimed that the balance of convenience favoured them, as the case's purpose would be lost without restraint, and no urgency was suggested by the respondents. The court found that there was a serious question to be tried regarding the respondents' failure to consider relevant factors and the balance of convenience, leading to the decision to grant the relief sought.

The court ordered that the respondents be restrained from accessing the applicants' trust account records until further order. The directions hearing was brought forward to a date to be fixed by arrangement with the parties, and the respondents were ordered to pay the costs of the motion.