JEREMY JAMES MCGUIRE / AND THE COMMISSIONER OF INLAND REVENUE /

[2024] NZHC 2796

IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY

I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-A-TARA ROHE

CIV-2023-485-377

[2024] NZHC 2796

UNDER

Judicial Review Procedure Act 2015 and Part 30 of the High Court Rules 2016

BETWEEN

JEREMY JAMES MCGUIRE

Plaintiff/Respondent

AND

THE COMMISSIONER OF INLAND REVENUE

First Respondent/Applicant

AND

PALMERSTON NORTH DISTRICT COURT

Second Respondent

Hearing:

on the papers

Counsel:

G J Woollaston for plaintiff/respondent

K I S Naik-Leong and C L Russell for first respondent/applicant No appearance for second respondent (abiding on issues of substance)

Judgment:

26 September 2024

JUDGMENT OF JOHNSTONE J

(quantum of reasonable indemnity costs)

This judgment was delivered by me on 26 September 2024 at 3pm pursuant to r 11.5 of the High Court Rules.

Registrar/Deputy Registrar

Solicitors:

Crown Law, Wellington

MCGUIRE v THE COMMISSIONER OF INLAND REVENUE [2024] NZHC 2796 [26 September 2024]

[1]                  By an amended statement of claim  dated  17  August  2023  (the  Claim),  Mr McGuire sought judicial review of a District Court judgment entering judgment against him for $39,763.48 in unpaid tax, plus costs. By judgment dated 22 April 2024, I struck out the Claim and dismissed the underlying proceeding, except that I ordered Mr McGuire to pay the reasonable costs of the Commissioner of Inland Revenue, calculated on an indemnity basis.

[2]                 I required the Commissioner to describe fully his calculation of his reasonable costs, by memorandum to be filed and served by 3 May 2024. I directed Mr McGuire, in the event he took issue with the amount of costs claimed, to set out the basis for doing so, in a memorandum to be filed by 17 May 2024, and indicated I would determine the issue thereafter on the papers.

[3]                 The Commissioner’s memorandum was filed on 3 May 2024. Mr McGuire has not responded. In those circumstances, I proceed to determine the issue of calculation of the Commissioner’s reasonable, indemnity costs.

[4]                 At the date of my judgment, the Commissioner had paid Crown Law invoices for fees totalling $64,722.03, rendered since Mr McGuire filed his judicial review proceedings. Of that amount, $55,711.25 pertains to fees of counsel, $568.77 to disbursements, and $8,442.01 to goods and services tax (GST).

[5]                 The Commissioner does not seek the GST component, having been able, as a person registered for GST purposes, to recover it.1 Also, the Commissioner does not seek $5,814 of fees and $95.65 of disbursements relating to an interlocutory application for discovery which Mr McGuire brought during the proceeding. The parties resolved that application, agreeing to let costs lie where they fall.

[6]                 The balance of costs and disbursements, which the Commissioner seeks by way of award, is $50,274.71.

1      This, in accordance with New Zealand Venue and Event Management Ltd v Worldwide NZ LLC

[2016] NZCA 282, (2016) 23 PRNZ 260 at [13].

[7]                 I have been assisted by the Commissioner’s account of the time taken by his counsel, and the hourly rate charges, for attendances relating to the various steps taken in the proceeding prior to my strike out judgment. I consider that, as my judgment reflects, there was a degree of complexity in the proceeding in that addressing it required familiarity with an extended course of dealings between the Commissioner and Mr McGuire over factually dense subject material.

[8]                 I note that, given his lack of response, Mr McGuire appears to accept that the amount of costs sought by way of indemnity is reasonable.

[9]                 On the basis set out above, I determine that the amount of the Commissioner’s reasonable costs, to be paid by Mr McGuire, is $50,274.71.

Johnstone J

Solicitors: