When the Tax Commissioner tells lies to defend legal action based on the Tax Commissioner telling lies

 A pattern is emerging...

A surprise in an affidavit and submissions filed in the Federal Court of Australia by the Australian Taxation Commissioner's legal representatives was: 

  1. An unprofessional false allegation by his solicitor against the applicant in the proceeding, and
  2. The response to the applicant's criticism of this unprofessional false allegation was not the expected retraction and apology, but instead, a further false allegation by his junior and senior counsels in submissions falsely asserting the false allegation was true. 

BREAKING

In an unexpected twist, just a few days after filing an Interlocutory Application and submissions in response to the Australian Taxation Commissioner's counsel making baseless allegations against the Applicant, the Tax Commissioner's solicitor has advised that those counsel HAVE RETURNED THEIR BRIEFS and will no longer appear for the Tax Commissioner.

An exchange of emails between the Applicant and the Tax Commissioner's solicitor on this bizarre development is available here: "The Commissioner of Taxation's "absolute immunity" is fading".


The Applicant's submissions on his interlocutory application to have the Federal Court of Australia address this issue before hearing the Tax Commissioner's interlocutory application to strike out the original proceeding are included below. The original proceeding is about the Tax Commissioner's legal representatives making deceptive and misleading submissions in a previous proceeding: 

The applicant's interlocutory application and affidavit filed in support of the application are available in pdf files on Google Drive:

  1. Interlocatory Application dated 16 June 2025, and
  2. Affidavit affirmed 16 June 2025.

APPLICANT’S OUTLINE OF SUBMISSIONS

On the Applicant’s Interlocutory Application on Preliminary Issues

No. ACD57 of 2024

Federal Court of Australia

District Registry: Australian Capital Territory

Division: General

COLIN GEORGE DUNSTAN

Applicant

ROBYN ORR and others named in the schedule

Respondents

 

 

 

Contents

A.    LEGAL PRINCIPLES.. 1

B.    PRELIMINARY ISSUES.. 4

C.    CONCLUSION.. 7

 

 

 

A.         LEGAL PRINCIPLES

1.     The Legal Profession (Barristers) Rules 2021 made under the Legal Profession Act 2006, s579(1) (Rules for barristers) in the extract below:

PREAMBLE

These Rules are made in the belief that:

1.         The administration of justice is best served by reserving the practice of law to officers of the Supreme Court who owe their paramount duty to the administration of justice.

2.         As legal practitioners, barristers must maintain high standards of professional conduct.

3.         The role of barristers as specialist advocates in the administration of justice requires them to act honestly, fairly, skilfully, diligently and fearlessly.

4.         Barristers owe duties to the courts, to other bodies and persons before whom they appear, to their clients, and to their barrister and solicitor colleagues.

INTRODUCTION & INTERPRETATION

8.         These Rules are made by the Bar Council.  They may be cited as the ACT Barristers’ Rules.

9.         These Rules are not, and should not be read as if they were, a complete or detailed code of conduct for barristers.  Other standards for, requirements of and sanctions on the conduct of barristers are found in the inherent disciplinary jurisdiction of the Supreme Court and in the general law (including the law relating to contempt of court). 

10.       These Rules should be read and applied so as most effectively to attain the objects and uphold the values expressed in their Preamble.

11.       General provisions of these Rules should not be read or applied in a limited way by reason of any particular or illustrative provisions.

12.       Headings in these Rules shall be read as part of these Rules, but shall not be used so as to read or apply any of the Rules in a more limited way than would have been so if the headings were not part of the Rules.

13.       These Rules are not to be read by reference to any former rules made by the Bar Association, whether or not the substance of any such rule is reflected in any of these Rules.

ADVOCACY RULES

Delinquent or guilty clients

32.       A barrister whose client informs the barrister, during a hearing or after judgment or decision is reserved and while it remains pending, that the client has lied to the court or procured another person to lie to the court or has falsified or procured another person to falsify in any way a document which has been tendered:

(a)        must refuse to take any further part in the case unless the client authorises the barrister to inform the court of the lie or falsification;

(b)        must promptly inform the court of the lie or falsification upon the client authorising the barrister to do so; but

(c)        must not otherwise inform the court of the lie or falsification.

Briefs which must be refused

87.       A barrister must refuse to accept or retain a brief or instructions to appear before a court if:

(e)        the barrister has reasonable grounds to believe that the barrister's own personal or professional conduct may be attacked in the case;

2.     The Legal Profession (Solicitors) Conduct Rules 2015 made under the Legal Profession Act 2006, s 580 (Rules for solicitors) in the extract below:

3          PARAMOUNT DUTY TO THE COURT AND THE ADMINISTRATION OF JUSTICE

3.1       A solicitor’s duty to the court and the administration of justice is paramount and prevails to the extent of inconsistency with any other duty.

18        FORMALITY BEFORE THE COURT

18.1     A solicitor must not, in the presence of any of the parties or solicitors, deal with a court on terms of informal personal familiarity which may reasonably give the appearance that the solicitor has special favour with the court.

19        FRANKNESS IN COURT

19.1     A solicitor must not deceive or knowingly or recklessly mislead the court.

19.2     A solicitor must take all necessary steps to correct any misleading statement made by the solicitor to a court as soon as possible after the solicitor becomes aware that the statement was misleading.

20        DELINQUENT OR GUILTY CLIENTS

20.1     A solicitor who, as a result of information provided by the client or a witness called on behalf of the client, learns during a hearing or after judgment or the decision is reserved and while it remains pending, that the client or a witness called on behalf of the client:

20.1.1  has lied in a material particular to the court or has procured another person to lie to the court;

20.1.2  has falsified or procured another person to falsify in any way a document which has been tendered; or

20.1.3  has suppressed or procured another person to suppress material evidence upon a topic where there was a positive duty to make disclosure to the court;

must –

20.1.4  advise the client that the court should be informed of the lie, falsification or suppression and request authority so to inform the court; and

20.1.5  refuse to take any further part in the case unless the client authorises the solicitor to inform the court of the lie, falsification or suppression and must promptly inform the court of the lie, falsification or suppression upon the client authorising the solicitor to do so but otherwise may not inform the court of the lie, falsification or suppression.

21        RESPONSIBLE USE OF COURT PROCESS AND PRIVILEGE

21.2     A solicitor must take care to ensure that decisions by the solicitor to make allegations or suggestions under privilege against any person:

21.2.1  are reasonably justified by the material then available to the solicitor;

21.2.2  are appropriate for the robust advancement of the client’s case on its merits; and

21.2.3  are not made principally in order to harass or embarrass a person.

21.3     A solicitor must not allege any matter of fact in:

21.3.1  any court document settled by the solicitor;

21.3.2  any submission during any hearing;

21.3.3  the course of an opening address; or

21.3.4  the course of a closing address or submission on the evidence,

unless the solicitor believes on reasonable grounds that the factual material already available provides a proper basis to do so.

21.4     A solicitor must not allege any matter of fact amounting to criminality, fraud or other serious misconduct against any person unless the solicitor believes on reasonable grounds that:

21.4.1  available material by which the allegation could be supported provides a proper basis for it; and

21.4.2  the client wishes the allegation to be made, after having been advised of the seriousness of the allegation and of the possible consequences for the client and the case if it is not made out.

B.         PRELIMINARY ISSUES

3.     The solicitor for the Respondents, Ms McKean filed an affidavit in this proceeding that contained an allegation against the Applicant that is in breach of rules 21.2, 21.3 and 21.4 of the Legal Profession (Solicitors) Conduct Rules 2015 made under the Legal Profession Act 2006, s 580 (Rules for solicitors).

4.     When informed of this in the Applicant’s affidavit and submissions in reply, rather than withdrawing and apologising for the breach, the Counsels for the Respondents filed an outline of submissions on 12 June 2025 which falsely asserts at [22] the truth of the allegation:

“AA1 [51] and [53]-[55] should be read together. They appear to reduce to the proposition that Ms. McKean has deposed to incidents of misconduct having been committed by Mr. Dunstan. She has. In doing so she has done no more than recite conclusions of fact recorded by Besanko J (Dunstan v. Orr [2008] FCA 31; 217 FCR 559 and MCM-1 p. 9). Mr. Dunstan failed to prosecute his appeal from Besanko J’s judgment, as the public record of the appeal proceeding, ACD 12 of 2008, shows. It was unremarkable for Ms. McKean to give the evidence she did …”

5.     The reference to “conclusions of fact recorded by Besanko J” is not a reference to any identifiable conclusion of fact that Ms McKean is asserted to have recited.

6.     The plainly false and serious allegation Ms McKean has made against the applicant does not exist in MCM-1 p.9 which is page 1 of the judgment Dunstan v Orr [2008] FCA 31.

7.     The relevant conclusion of fact is in that judgment at [56], the dot-point at the top of page 21 of the decision:

·        Mr Higham was unable to determine the motives behind the alleged attempted breaches. Mr Higham did not pursue this aspect as it was not, in his opinion, essential to the notion that misconduct may have occurred.

8.     This conclusion of fact recorded by Besanko J is at MCM-1 p.9 of the annexure to Ms McKean’s affidavit. Plainly her allegation does NOT recite any conclusion of fact. It is a serious, false allegation against the applicant.

9.     The Counsels’ reply adds another serious, false allegation against the applicant:

“Ms. McKean has deposed to [sic, falsely alleged] incidents of misconduct having been committed [sic, having not been committed] by Mr. Dunstan.”

10.  There are NO “incidents of misconduct having been committed by Mr. Dunstan”.

11.  It has never been asserted and in any other proceeding that the Applicant committed any such misconduct.

12.  The Counsels, Mr Parkinson and Mr Smyth, have lied about what is in the judgment Dunstan v Orr [2008] FCA 31 to cover up the lie told by Ms McKean in the affidavit she filed in this proceeding.

13.  In doing so, Mr Parkinson and Mr Smyth breached rule 2 of the Legal Profession (Barristers) Rules 2021 made under the Legal Profession Act 2006, s579(1) (Rules for barristers).  This breach is further addressed by rule 87 (e):

87.       A barrister must refuse to accept or retain a brief or instructions to appear before a court if:

(e)        the barrister has reasonable grounds to believe that the barrister's own personal or professional conduct may be attacked in the case;

14.  Rule 18.1 of the Legal Profession (Solicitors) Conduct Rules 2015 requires:

A solicitor must not…deal with a court on terms of informal personal familiarity which may reasonably give the appearance that the solicitor has special favour with the court.”

15.  Ms McKean was able to electronically lodge an affidavit in this proceeding with fewer requirements than were imposed on the Applicant.

16.  The Applicant raised this in writing to the Court and the Ms McKean, and consequently a different process was offered to the Applicant.

17.  In reply to a query from Ms McKean asking the Applicant if this resolved his concerns of unequal treatment, the Applicant asked Ms McKean about the process made available to her for lodging affidavits in the Federal Court.

18.  Ms McKean, to date, has not answered.

19.  Rule 32 of the Legal Profession (Barristers) Rules 2021 and rule 20 of the Legal Profession (Solicitors) Conduct Rules 2015 address in similar terms the issue of delinquent or guilty clients.

20.  Correspondence exchanged between the Applicant and the legal representatives of the respondents following the hearing in September 2022 canvas raise this issue. There are reasonable grounds to believe that the Respondents did provide relevant admissions of wrongdoing in unredacted copies of the “Molyneux Notes” immediately prior to the hearing.

21.  The Applicant is blocked for the time being from agitating this issue with the legal representatives rejecting the Applicant’s request to re-assess all claims of privilege on the basis that the claims have been superseded by communications that amount to waiver.

22.  The Court may inspect documents to assess whether claims of privilege should be upheld.

23.  There is no reason the Court should not also inspect documents subject to claims of privilege to assess whether the communications in those documents from clients to their legal representatives are admissions relevant to professional standards on delinquent clients.

C.        CONCLUSION

24.  Based on the legal principles and reasons set out in these submissions and the evidence in support:

a.      the orders requested in the Applicant’s Interlocutory Application of 16 June 2025 should be made, and

b.     Any further orders the Court considers appropriate in the circumstances

16 June 2025

Colin Dunstan

Applicant

 


Schedule

 

No. ACD57 of 2024

Federal Court of Australia

District Registry: Australian Capital Territory

Division: General

Respondents

Second Respondent:                      JOHN HIGHAM

Third Respondent:                          JOHN GROWDER

Fourth Respondent                         COMMONWEALTH OF AUSTRALIA

 


Comments

Popular posts from this blog

Applicant's Affidavit of 14 May 2025 - Dunstan v Orr and Others - ACD57 of 2024

Does the Tax Commissioner know how his legal representatives conduct litigation?