Detector Inspector v CoInvest Ltd [2025] VSC 135
Given long service leave charges paid to a fund were a ‘tax’3, it was argued (A) that related rules should be read narrowly, and (B) that, where two meanings are reasonably open after applying the ordinary rules of interpretation, the issue should be resolved in favour of the taxpayer4. Watson J rejected this. Tax statutes form no special class, the judge said, but their tax character is part of the context to be considered5.
Comment – that a taxpayer wins if ambiguity remains ‘after applying the ordinary rules’ is an idea that harks to the past and is yet to be squared with modern authority. In any event, it will be rare in practice, but might occur where no purpose can be identified6.
This principle is from Episode 121 of interpretation NOW!
Footnotes:
3 s 4 of the Construction Industry Long Service Leave Act 1997 (Vic).
4 Redland [2024] HCA 7 [177], Herzfeld & Prince [10.150], Pearce [9.50-9.53].
5 Alcan [2009] HCA 41 [57], cf Sunlite [2023] FCAFC 43 [6].
6 cf Ravbar [2025] HCA 25 [238] Edelman J.