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- NATIONAL
Bankrupt barrister who owed tax office led no life of Riley, court told
Barrister Barry Murphy outside the court yesterday. Photo: Edwina Pickles
By Leonie Lamont
In what may be the most important court appearance of his professional life, barrister Barry James Murphy appeared in the Supreme Court yesterday, the 14th barrister in NSW to lose his practising certificate because he is bankrupt.
Justice McClellan heard that by the time Mr Murphy petitioned for bankruptcy in October last year, he owed $231,000 - almost all of it unpaid tax and tax penalties.
Mr Murphy was admitted to the Bar in August 1998 and was located at Windeyer Chambers. He is appealing against the Bar Association's decision to cancel his practising certificate in October this year.
Paul Brereton, SC, for Mr Murphy, said that when Parliament acted this year - prompted by "press" outrage at some barristers' misuse of bankruptcy laws to evade tax - it had been aimed at those "still living the life of Riley in waterfront houses and driving expensive cars".
He said that scenario didn't apply to Mr Murphy. His bankruptcy, the seeds of which had been sown during a business venture with a kindergarten, had "come down to inadequate management of his own affairs".
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However, Peter Garling, SC, for the Bar Association, said Mr Murphy paid tax on his non-salaried income only four times between 1986 and 2000.
"Does that represent a legal practitioner acting to fulfil either his legal or civic obligations?" Mr Garling asked.
"It doesn't present that picture, no," Mr Murphy replied.
Under questioning, he said he "didn't know" if a $1000 cheque he wrote to the ATO bounced.
"You don't know whether the cheque you sent to the Tax Office was met or bounced?" Justice McClellan asked.
"I don't know" came the reply.
"Has it been your common experience that your cheques bounce?" the judge said.
"No," said Mr Murphy.
The case continues.
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