Farm tax appeal by corrupt ex-MP's family thrown out
A notorious family running out of money to pay lawyers has had a decade-long appeal over a multi-million-dollar tax bill thrown out for persistently breaching court orders.
Eleven relatives of corrupt former Labor powerbroker Eddie Obeid failed to stop a tax office bid to toss their appeal.
The Federal Court ruling on Thursday brings an end to a case first filed in 2014 and then delayed to allow numerous corruption and criminal inquiries against members of the family to conclude.
Family patriarch Eddie Obeid and son Moses were jailed in 2021 for seven and five years respectively for conspiracy to commit misconduct in public office.
The offence related to a corrupt deal to sell the family farm Cherrydale Park to a coal company.
The 11 relatives, including Eddie's wife Judith and son Edward Jr, were challenging a tax office decision that said they owed tax from the $30 million sale of Cherrydale.
With the appeal hearing set to begin in 11 days, Justice Geoffrey Kennett found the family failed in its duty to comply with court orders for months.
The judge's associate sent the family three separate emails in June and July asking for details of the progress being made to file written submissions.
No response was received, other than an email from their previous solicitor saying he was no longer acting for the family.
Eddie Obeid's criminal lawyer Michael Bowe later told the court the family did not have the resources to hire counsel for the hearing, so it should either be delayed again, or start with no written submissions or witness lists.
"Technically, this is correct, however it is not a proper approach to complex litigation," Justice Kennett said on Thursday.
"For a party to put the court in a position to proceed in such a way would be a breach of their obligations."
Justice Kennett outlined multiple occasions where requests for documents or evidence were ignored.
"(The family) have been calculated and recalcitrant in their non-compliance to orders of the court," he said.
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