Commissioner of Taxation v Bosanac (No 7)

• Jurisdiction: Australia Federal only
• Judgment Date: 22 March 2021
• Neutral Citation: [2021] FCA 249
• Court: Federal Court
• Date: 22 March 2021

FEDERAL COURT OF AUSTRALIA

Commissioner of Taxation v Bosanac (No 7) [2021] FCA 249

File number:	WAD 291 of 2015
Judgment of:	MCKERRACHER J
Date of judgment:	22 March 2021
Catchwords:	EQUITY – presumption of advancement – whether the presumption of advancement applies to the matrimonial home – whether the presumption has been rebutted – where both spouses contribute equally to the purchase of the matrimonial home through joint loans – where title is placed in the wife’s name only – where the Commissioner of Taxation seeks a declaration as to the husband’s beneficial interest to satisfy judgment debt – consideration of whether Trustees of Property of Cummins (a bankrupt) v Cummins (2006) 227 CLR 278 qualifies the presumption of advancement
Legislation:	Evidence Act1995 (Cth) ss 59(1), 81(1), 135 Federal Court of Australia Act 1976 (Cth) s 37M Taxation Administration Act 1953 (Cth) Pt IVC Federal Court Rules 2011 (Cth) r 8.21(1)(a) Property Law Act1969 (WA) s 34
Cases cited:	Abigail v Lapin[1934] AC 491 Allen v Snyder [1977] 2 NSWLR 685 Anderson v McPherson (No 2) (2012) 8 ASTLR 321; [2012] WASC 19 AonRisk Services Australia Ltd v Australian National University(2009) 239 CLR 175; [2009] HCA 27 Black UhlansIncorporated v Crime Commission (NSW) [2002] NSWSC 1060 Brown v Brown (1993) 31 NSWLR 582 Calverley v Green (1984) 155 CLR 242; [1984] HCA 81 Charles Marshall Pty Ltd v Grimsley (1956) 95 CLR 353, [1956] HCA 28 Commissioner of Taxation v Bosanac [2016] FCA 448 Commissioner of Taxation v Bosanac (No 2) [2016] FCA 945 Commissioner of Taxation v Bosanac (No 5)[2019] FCA 2126 Commissioner of Taxation v Bosanac (No 6) [2020] FCA 339 Cook v Fountain (1676) 3 Swan 585; 36 ER 984 Coulls v Bagot’s Executor & Trustee Co Ltd(1967) 119 CLR 460; [1967] HCA 3 Currie v Hamilton[1984] 1 NSWLR 687 Delehunt v Carmody(1986) 161 CLR 464; [1986] HCA 67 Deputy Commissioner of Taxation v Huang[2019] FCA 1728 Deputy Commissioner of Taxation v Vasiliades [2014] FCA 1250 Deputy Commissioner of Taxation v Vasiliades [2015] FCA 412 Devoy v Devoy(1857) 65 ER 713 Doohan v Nelson (1973) 2 NSWLR 320 Dyer v Dyer(1788) 2 Cox 92; 30 ER 42 Ebner v Official Trustee in Bankruptcy(2003) 126 FCR 281;[2003] FCA 73 re Ekyn’s Trust (1877) 6 Ch D 115 English, Scottish & Australian Bank Ltd v Phillips (1937) 57 CLR 302 Farah Constructions Pty Ltd v Say-Dee Pty Ltd(2007) 230 CLR 89; [2007] HCA 22 Finch v Finch (1808) 15. Ves. Jun. 43:33 E.R. 671 Gissing v Gissing [1971] AC 886 Gutierrez de Martinez v. Lamagno,515 U.S. 417 (1995) Hepworth v Hepworth(1963) 110 CLR 309; [1963] HCA 49 Hoy Mobile Pty Ltd v Allphones Retail Pty Ltd(2008) 167 FCR 314; [2008] FCA 369 John Alexander’s Clubs Pty Ltd v White City Tennis Club Ltd(2009)241CLR1;[2010]HCA19 Kelly v Mina [2014] NSWCA 9 Ketteman v Hansel Properties Ltd [1987] 1 AC 189 Kingdon v Bridges (1688) 23 ER 653 Malayan Credit Ltd v Jack Chia-MPH Ltd[1986] AC 549 Martin v Martin (1956) 110 CLR 297; [1959] HCA 62 Moate v Moate[1948] 2 All ER 486 Murtagh v Murtagh [2013] NSWSC 926 Nambery Craft Pty Ltd v Watson [2011] VSC 136 Napier v Public Trustee (WA)(1980) 32 ALR 153 Nelson v Nelson(1995) 184 CLR 538; [1995] HCA 25 News Ltd v Australia Rugby Football League (1996) 64 FCR 410; [1996] FCA 870 Pettitt v Pettitt [1969] UKHL 5; [1970] AC 777 Silver v Silver[1958] 1 WLR 259 Silvia (Trustee) v Williams, in the matter of Williams (Bankrupt) [2018] FCA 189 Soar v Foster(1858) 70 ER 64 Stewart Dawson & Co (Vic) Pty Ltd v Commissioner of Taxation (Cth) (1933)48 CLR 683; [1933] HCA 4 TamayaResourcesLimited(inliq)vDeloitte Touche Tohmatsu (2012) 332 ALR 199; [2016] FCAFC 2 Ting, H. & Anor v. Blanche, S. & Anor [1993] FCA 781; (1993) ATPR 41-282 Trustees of Property of Cummins (a bankrupt) v Cummins (2006) 227 CLR 278; [2006] HCA 6 Re Vassis; Ex parte Leung(1986) 9 FCR 518 Wimpole v McIlwraith [1923] VLR 553 Windella (NSW) Pty Ltd v Hughes[1999] NSWSC 1129; (1999) 49 NSWLR 158 Wirth v Wirth (1956) 98 CLR 228; [1956] HCA 71 ; Ford HAJ and Lee WA, Principles of the Law of Trusts (Thomson Lawbook Co) (update 181) Heydon JD and Leeming MJ, Jacobs’ Law of Trusts in Australia (8th ed, Lexis Nexis, 2016) Scott AW and Fratcher WF, The Law of Trusts (4th ed, Little, Brown and Company, (1989)
Division:	General Division
Registry:	Western Australia
National Practice Area:	Taxation
Number of paragraphs:	232
Date of hearing:	8 July 2020
Date of last submissions:	3 August 2020
Counsel for the Applicant:	Mr AJ Musikanth SC with Mr J Slack-Smith
Solicitor for the Applicant:	Australian Government Solicitor
Counsel for the First Respondent:	Mr R Blow
Solicitor for the First Respondent:	Cove Legal
Counsel For the Second Respondent:	Mr T Bagley with Mr B O’Connor (Pro Bono)

ORDERS

WAD 291 of 2015

BETWEEN:	COMMISSIONER OF TAXATION Applicant
AND:	VLADO BOSANAC First Respondent ; BERNADETTE BOSANAC Second Respondent

JUDGE:	MCKERRACHER J
DATE OF ORDER:	22 MARCH 2021

THE COURT ORDERS THAT:

1. The application be dismissed.

2. The applicant pay the costs of the second respondent, to be assessed if not agreed.

Note: Entry of orders is dealt with in Rule 39.32 of the Federal Court Rules 2011.

REASONS FOR JUDGMENT

MCKERRACHER J:

1 In this proceeding the applicant (the Commissioner) seeks a declaration broadly to the effect that the first respondent (Mr Bosanac) has an equitable interest to the extent of 50% of the available equity in a residential property in Dalkeith, Western Australia (the Dalkeith Property). I say ‘broadly’ as there has been much debate about the precise wording of the declaration, a topic visited shortly in these reasons. The second respondent (Ms Bosanac) is the sole registered proprietor of the Dalkeith Property. On 29 April 2016, the Court entered summary judgment against Mr Bosanac in the sum of $9,344,111.89 plus costs: Commissioner of Taxation v Bosanac [2016] FCA 448. On 12 August 2016, execution of the judgment was stayed until further order: Commissioner of Taxation v Bosanac (No 2)[2016] FCA 945. The stay was lifted on 17 December 2019, with effect from 29 August 2019 (Commissioner of Taxation v Bosanac (No 5) [2019] FCA 2126), and the declaration is now sought to facilitate recovery of part of the judgment sum by the Commissioner.

2 The central question is whether on the facts of this case a ‘presumption’ of advancement displaces a presumption of a resulting trust and whether the operation of either presumption is rebutted by evidence...