The Federal Court judgment of Justice Thawley of July 2025 Does the Commissioner of Taxation have a hold over one or more judges of the Federal Court? The Australian Taxation Office has a well-worn tactic to avoid complying with its Model Litigant Obligation. Under the Legal Services Directions, Commonwealth entities and their lawyers must act as model litigants, which requires maintaining the highest ethical standards. This includes not requiring another party to prove a matter that the Commonwealth knows to be true. It is said that "The Commonwealth's obligation to act as a model litigant is codified under Part 5, Division 2 of the Legal Services Directions. This duty ensures [sic, fails to ensure] that the government and its agencies behave with complete propriety, fairness, and honesty in all litigation and civil claims." In reality it ensues no such thing. When confronted by a claim supported by evidence that the Commissioner of Taxation has failed to ...
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