Sobey v Commissioner of Taxation

In Sobey v Commissioner of Taxation, Mr Sobey appealed against the Commissioner's decisions to disallow his objections to income tax assessments for the years ended 30 June 2004 and 30 June 2005. The dispute centred on whether certain amounts Mr Sobey received were interest or returns of capital, and whether he had authorised the tax returns used by the Commissioner. The case was managed in the Victoria Registry of the Federal Court under the Tax List Directions. The Commissioner applied for an order that Mr Sobey pay the Commissioner's costs thrown away due to the trial being adjourned. The court had to determine whether Mr Sobey's appeal had any reasonable prospects of success and whether the adjournment was caused by his conduct. The court found that Mr Sobey had not demonstrated any reasonable prospects of success in his appeal, and the adjournment was due to his failure to comply with pre-trial orders and the Tax List Judge's directions. The court held that Mr Sobey should pay the Commissioner's costs thrown away due to the trial being adjourned, including the costs of the hearings on 5 and 18 September 2008, to be taxed and paid on an indemnity basis.