Decision date: 31 October 2013 (oral decision)
Case: EngineerOnline Limited v Commissioner of Inland Revenue
Act(s): High Court Rules
Keywords: Mannix, security for costs, representation, exceptional circumstances
The judgment upheld the rule established in the Court of Appeal decision Re GJ Mannix Ltd  1 NZLR 309, but waived security for costs where the director of the appellant company provided an undertaking to pay costs.
The rule in Mannix will only be departed from in exceptional circumstances. Security for costs may be waived where an undertaking is given.
The appellant company, EngineerOnline Limited, lost a challenge in the Taxation Review Authority ("TRA") in respect of the Commissioner's assessment to disallow the zero-rating, for goods and services tax ("GST") purposes, of supplies manufactured by the company.
The company appealed to the High Court. Preliminary to the substantive appeal, the Court was asked to decide the company's applications to be represented by its director, Mr MJ Elmes, and to have security for costs waived.
The Court found that there were no exceptional circumstances justifying the departure from the Mannix rule. In fact the Court was persuaded that it was in the appellant company's own interests, as well as those of the Court and the respondent, that it should be represented by a lawyer. The Court found this on the basis that:
The Court found that the particular circumstances of the case merited waiving security for costs, for two reasons:
Costs were reserved.