Ashworth, Re [1991] QSC 216 [1992] 2 Qd R 459
. '\c,A.
-~
I
10
20
30
40
60
IN
THE
SUPREME
COURT OF
QUEENSLAND
CIVIL
JURISDICTION
No.
164
of
1991
BEFORE
THE
CHIEF .JUSTICE (Mr.
Justice
Macrossan)
BRISBANE,
18
JULY
1991
(Copyright
in
this
transcript
is
vested
inthe
Crown.
Copies
thereof
must
not
be
made
or
sold
without
the written authority
of
the
Chief
Court
Reporter,Court
Reporting Bureau.)
IN
THE MATTER OF
the
Crimes
(Confiscation
of
Profits)
Act 1989-1990
-and-
IN
THE MATTER
OF
an
application
by
the Director
of Prosecutions
for
a
Pecuniary
Penalty
Order
against
Marie
Louise
Ashworth
JUDGMENT
HIS
HONOUR:
I
order
that
the
respondent
pay
as
a
pecuniary
penalty
pursuant
to
the provisions of
s.
13
of
the
Crimes
Confiscation of
Profits
Act 1989-1990
the
sum
of
$3,300 as
requested.
I
make
no
order for costs.
I
publish
my
reasons.
-Govt. Printer, Qld.
1
10
20
30
40
50
60
-- 1 of 22 --
IN THE SUPREME COURT
OF QUEENSLAND
.Sc 91/c2.1
No. 164
of
1991
IN THE MATTER
of Part
III
of the
Crimes
(Confiscationof Profits)
Act 1989-1990
-
and
-
IN
THE MATTER
application
by
theof Prosecutions
PECUNIARY
PENALTY
against
MARIE
ASHWORTH
of
an
Director
for
a
ORDER
LOUISE
JUDGMENT
-
THE
CHIEF JUSTICE
Delivered the eighteenth
day
of July,
1991.
The
applicant, Director of Prosecutions, pursuant
to the
Crimes
(Confiscation
of
Profits)
Act 1989,
applies for
a
pecuniary penalty order
against the
respondent
Marie
Louise
Ashworth.
The
sum
sought
by
the notice of
motion
is
$17,300.00.
The
submission
for the Director
was
that
-
this
was
an
appropriate
assessment
of the
value
of the
benefits
which
the
respondent derived as
a
result
of her
committing
the offence
of
trafficking
with
which
she
had
been
charged.
On
27
September,
1990
the
respondent pleaded
guilty to
the
charge
of
trafficking
and
she
was
sentenced
to
a
term
of
seven
years
imprisonment
with
a
recommendation
that
she
be
considered
for parole
after
serving
one and
half
years of
that
sentence.
The
indictment, described as presented
under
s.
5
of
the
Drugs Misuse Act 1986,
charged
that
between
31
July,
1987
and
8
June,
1988,
at
the
Gold
Coast,
the
respondent
did
carry
-- 2 of 22 --
2
on
the business of unlawfully trafficking in
a
dangerous drug
which was
specified as being heroin
a
drug comprehended
within
the
First
Schedule
of the
Drugs Misuse Act.
At
the hearing,
a number
of affidavits
were
read
on
behalf of the applicant
and
these served
to enlighten as to
evidence
which had
previously
been adduced and
material
presented
at
committal
or
on
sentence. Evidence
of
conversations in
which
the respondent
was
said to
have engaged
and which had been
tape recorded
was
also
placed before the
Court.
The
rather large
volume
of
this
material
was made more
manageable
by
the presentation
at
the hearing of
a
synopsis of
relevant
events. This
was
prepared
on
behalf of
the
applicant.
The
matters
stated in
this
synopsis
were
largely
agreed
to
by
the respondent
..
In
particular
it
was
accepted
by
her
that
she
had
received the
amounts
of
money
referred to in
that
doc
um
en
t .
However,
she
gave
evidence
on
the hearing of
the
motion
and
-
sought
to
introduce
a
number
of
distinctions
and
refinements.
Some
of her
evidence
I
did not find
persuasive
al
though
it
was
not
directly
contradicted.
Like
\
others in
her
position,
she could
be
expected
to feel
some
pressure to
distort
and
misrepresent.
She
did not give
me
the
impression
that
on
all
issues
with
which
she
dealt
she
was
placing
before the
Court
a
reliably
accurate
construction
of
events.
The
following
will
serve as
a
sufficient outline
at
this
point.
-- 3 of 22 --
3
An
undercover agent, Detective
Hermann made some
preliminary contact with the respondent and,
after
an
interval
of time, she
made a
sale of heroin to
him. This
first
sale
occurred in
March, 1988 and was
for the
sum
of
$7,300.00 which
was
paid over
to her
by Hermann.
A
further sale
took place
at
the
end
of
May
and
the
beginning
of
June, 1988.
Once
again, heroin
in
powder form
was
delivered
by
the respondent
to
Hermann. The
delivery
took
place
on
2
June, 1988.
Some few
days
earlier
Hermann
had
given
the
respondent
an advance
payment
of
$2,000.00
on
account
of the
purchase
which
was
to
be
made
by him.
On
this
occasion the respondent
did not
herself travel to
her
supplier
who was
apparently located in
Sydney
but
sent
a
collaborator
or
assistant
named
Jacobson. Jacobson flew
to
Sydney,
picked
up
the heroin
and
returned
with
it
to
Brisbane.
The
respondent then
handed
over the heroin
to
Hermann
and
received
in
exchange
a
further
$6,000.00.
Another
occasion has
some
relevance
for present
purposes
although
a
completed
sale
did not
result
from
it.
That
was
because
the
police
intervened before the
transaction
was
completed.
A
sale
was
to
be
made
and
Jacobson
again
flew
to
Sydney,
collected
heroin
and
returned
with
it,
this
time
in
a
considerably
larger
quantity.
She
was
apprehended
when
she
got
off
the
plane
at
Coolangatta
Airport.
The
respondent
was
then
also
taken
into
custody. In her
evidence,
the
respondent
said
that
on
this
last
occasion
$1,000.00
for
Jacobson's
expenses
had
been
provided
in
advance
by
Hermann.
episode occurred
on
7
June,
1988.
This
-- 4 of 22 --
4
The
total
weight of heroin in
powder form
sold
by
the
respondent to
Hermann
or seized
by
police
was 164.
731
grams
and
its
weight measured as pure heroin
was
80.018 grams.
It
was
suggested
that
it
had
a
street
value of $156,000.00.
In claiming
a
pecuniary penalty order in the
sum
of
$16,300.00
the applicant Director
was
relying
upon what
was
shown
as the
total
of the
payments
made
by Hermann
in the
course of the
transactions referred to.
These
constituted the
substance of the
Crown
case
on
trafficking.
The
payments were
respectively
$7,300.00
on
the
March
sale, the
advance payment
of
$2,000.00
and
the
further
payment
of
$6,000.00
on
the
sale
arranged
and
completed between
30
May
and
2
June
and
then
the
final
payment
of
$1,000.00
to
cover Jacobson's
expenses
on
the
transaction of
7
June.
In
view
of the
arguments
presented
on
the hearing the
true role
played
by
Jacobson
assumed
some
importance.
The
case
for the Director
was
that
Jacobson
was
no
more
than the respondent's
assistant
who
acted
in
accordance
with
the respondent's
directions
and
received
some
payments
primarily
to
cover
the
amount
of
her expenses.
The
responde~t, while
admitting
that
she
herself
played
the
major
role
in the
negotiations
with
Hermann
contended
that
too
much
should
not
be
read
into
this
because Jacobson
was
at
that
time
living
at
home
and
was
not as
free to
make
the necessary
arrangements.
The
respondent maintained
that
Jacobson
was
her
partner in
the
transactions other
than
the
first-mentioned
and
that
the
arrangement
between
Jacobson
and
herself
was
that
they
should
share
equally
in
the
profits
of the
trafficking
in
-- 5 of 22 --
5
May
and June. Certain of the reported cases
make
the
distinction
between
the roles of partner
and mere
assistant
important for
a
decision
upon
the appropriate
amount
of
any
pecuniary penalty order.
The
primary
contention for the respondent
was
that, at
most, she should be
ordered
to
pay no more
than one-half of
the
profit
balance
which
she
said
she had
received calculated
having
in
mind
the circumstances
and
the
arrangements
entered
into.
The
respondent
said
that
she
made
no
profit
on
the
March
sale for
$7,300.00.
She
says she
paid
$7,000.00
for the
drug
which
she
herself collected
from Sydney and
she
describes her
sale to
Hermann
in
terms
of
being paid
$7,000.00
for the
heroin
and
being given
$300.
00
to
reimburse
airfares.
This
reimbursement she tended
to
describe as
something
of .a
separate
arrangement
or
at least
as not
necessarily
part of
a
single
agreed
price for the heroin but her contention
in
this
respect
was
not
made
completely
clear.
The
respondent
says
that
she
was
alarmed
by
her
experience
when
she
collected
the heroin
in
March when
she
believed
that
she
was
being followed. Jacobson,
however,
was
prepared
to act
as
messenger
and
indeed
was
even keen
to
play
that part
·
so
it
was
agreed
between
the
two
of
them
that
Jacobson should
make
the
collection in
Sydney.
Jacobson
was
given
money
to
cover
her
expenses.
The
respondent appeared
to
be
saying
that
although she could
not
now
remember
exactly
how
much
this
payment
for
expenses
was,
it
was
in
the
form
of
an
advance.
The
respondent says
that
her
arrangement
with
-- 6 of 22 --
6
Jacobson
was
to share equally in the profit
which remained on
the deal after
expenses were taken into account.
She
says
that this
time the heroin cost
$6,000.00 and
the _total
consideration received
from Hermann was
$8,000.00.
She
considered
that
about $400.00 had been expended on
Jacobson's
airfares,
cab
fares
and
lunch
and $1,600.00
was
left
to
be
divided
between
the
two
of
them. Her
share
was
then
$800.00.
The
final transaction in
June
was
not completed.
The
supply
of heroin
which
was
seized
by
the police
on
that
occasion
had been
acquired
on
credit
the respondent
said.
It
is
open
to think
that
the
respondent
had assumed
some
obligation to
pay
her supplier for
this
heroin
which had been
entrusted to her.
The
legislation
under
which
the
applicant's
order
is
sought
has
its
difficultie·s.
Various
courts
on
a
number
of
occasions
have
attempted
to
clarify
some
of the
more
troublesome
aspects
involved
in
the
assessment
of
the derived
benefits
which
is
made
the basis of
pecuniary
penalty orders.
The
legislation
when
considered
has
not
always been
in
identical
form.
The
deepest
examination
of the various
problems
appears
to
have been
undertaken
in
two
cases
R.
v.
Fagher
(1989)
16
N.S.W.L.R.
67
in the
New
South
Wales
Court
of
Criminal
Appeal and
Cornwell
v.
Commissioner
of Australian
Federal Police
(1990)
94
A.L.R.
495
in
the
Full
Court
of
the
Federal
Court.
A
number
of other
authorities
are
reviewed
in
these
cases but
it
remains
the
position
that
no
uniform
view
has
emerged
on
certain
aspects.
-- 7 of 22 --
7
It is necessary first to look at the relevant
legislation. The task which confronts the assessing Court is
largely one of statutory construction.
Once the basis for assessment has been ascertained the
Court in practice will often have to do the best it can with
evidence which is incomplete and unreliable. In this
situation the Court will approach the matter bearing in mind
that questions of fact are to be decided by it on the balance
of probabilities: s. 67(1).
Section 6(1) provides for the making of applications for
forfeiture or for pecuniary penalty orders or for both. These
applications are authorised when a person has been convicted
of a "serious offence" which, for relevant purposes is defined
as an indictable offence: s. 3.
The- Court is empowered by s. 8, "if it considers it
appropriate", to order that property which it is satisfied is
"tainted property" be forfeited to the Crown. "Tainted
property" bys. 3 covers both property used or intended to be
used in connection with the commission of the offence and
property derived or realised directly or indirectly from the
commission of the offence. The proceeds of sales of heroin
and trafficking in heroin clearly would be comprehended.
It is clear that there is a very full discretion residing
in the Court which will call to be exercised· before a
forfeiture order is made. To decide whether such an order
should be made the Court is empowered to have regard to the
use made or intended to be made of the property in question,
-- 8 of 22 --
8
any hardship that
might be
likely to
be caused by
the
making
of the order
and the gravity of the offence concerned.
It is
of interest that
if
a
trafficker or
vendor
of
prohibited drugs remains
in possession of the proceeds of his
wrong-doing an
authorised
officer
may
seek the forfeiture of
those proceeds but in that
case there are
wide
discretions
which
are exercisable. In saying
this
I
do
not
mean
to
suggest
that in
any
case of
that
kind
the Court
would
ordinarily
be
loath to order
forfeiture of
ill-gotten
gains
that is
when
no
other special
circumstances
arose.
However,
if
the
wrong-doer
is
no
longer
in possession of
the
proceeds
a
forfeiture
order
would
not
be
appropriate but
in that
case
or,
indeed,
even
if
the
wrong-doer were
still
in
possession
of
the
proceeds,
a
pecuniary
penalty order
could
be
sought.
It
is
when
pecuniary
penalty orders are
sought
that
the
main
difficulties
are
encountered.
Section
13
provides as follows:
"(1)
If
an
application
is
made
to
a
court
under
section
6(1)(b)
for
an
order
in respect of
the
benefits
derived
by
the
person
as
the
result
of
committing
the offence, the
Court
may -
(a)
assess the value
of
those
benefits;
and
(b)
order the
person
to
pay
to
the
Crown a
pecuniary
penalty
equal
to
the value as so
assessed
less
-
(
i)
the value
(
as
at
the
time
of
making
the
order
under
this
subsection)
of
any
property
in
respect
of
which
a
forfeiture
order
is
made
in
reliance
on
the
same
conviction;
and
-- 9 of 22 --
9
(ii) if
the court thinks
it
desirable to take
it
into account, any
amount
payable by way
of restitution or
compensation in
relation to the
same
conviction.
(2)
An
amount
payable
by
a
person
to the
Crown
under
a
pecuniary penalty order, for
all
purposes,
is
to
be taken
to
be
a
debt
due
and owing by
that
person
to
the
Crown.
II
Section
3
defines "benefit" as including "advantage".
Section
14
deals
with the assessment
of benefits.
By
subs.
(2)
it
provides as follows:
"For
the
purposes
of
an
application for
a
pecuniary
penalty order against
a
person
(
in
this
subsection
called the 'defendant'),
the value
of the benefits
derived
by
the
defendant
from
the
commission
of
an
of
fence
or
offences
shall
be
assessed
by
the
Court
having
regard
to
the
evidence
before
it
concerning
all
or
any
of the following:-
"
There
then follow
a
number
of
sub-paragraphs (a)
to
(e)
specifying
a
variety
of matters.
Amongst
the matters
which
are required
to
be
regarded
are: the
money
or
value
of other
property
that
came
into
the possession
or
under
the
control of
the defendant
or
some
other
person
at
his
request
or direction
by
reason
of the
commission
of the
offence
or
any
of the
offences;
defendant;
the
value
of
any
other benefit
provided
to
the
where
the offence
consists
of
something
done
in
relation to
a
dangerous drug
the
market
value
of
such drug
or
the
amount
ordinarily
paid as
consideration for
some
similar
relevant action or
thing; the value of
the defendant's
property both
before
and
after
the
commission
of
the
relevant
of
fences
and
also
the
level
of the defendant's
income
and
expenditure
before
and
after
commission
of the offences.
-- 10 of 22 --
10
Some
of the matters referred to in s.
14 ( 2)
are not
directly relevant to the present hearing because although an
attempt
was made
to explore the level of the defendant's
expenditure before
and
after
the trafficking
and
to
investigate her
income and
the
amount
of her property
at
these
times,
it
was
inconclusive
and no
real
reason
emerged
to
call
for the application of these facts to the assessment.
It
was
not
shown
that the
respondent
had
bettered herself financially
in
these respects.
Subsection 14(6) provides
for
presumptions
to
operate in
respect of property of
a
person
against
whom a
pecuniary
penalty
is
sought,
casting
upon
a
respondent
the
burden
of
proving
that
property
has
not
come
into his
possession
or
under
his control
by
reason
of the
commission
of the offences.
Again
it
was
not
suggested
that
this
statutory
presumption
assumed
relevance
in
the present case.
Subsection
(7)
makes
provision
against
doubling
up where
pecuniary
penalty orders
have
already
been
imposed
whether
under
this
Act
or
a
law
of
the
Commonwealth,
a
territory
or
another
state.
Subsection
(8)
is
relevant in
this
case
and
has
been
the
subject of
concentrated
attention in other
cases as well.
It
provides as follows: "In
calculating, for
the
purposes
of
an
application for
a
pecuniary
penalty order, the
value
of
benefits
derived
by
a
person
from
the
commission
of
an
offence
or
offences,
any
expenses
or
outgoing
of the
person
in
connection with
the
commission
of the
offence
or
offences
shall
be
disregarded".
-- 11 of 22 --
11
I do not find
it
necessary to refer in detail to
any
other provisions of the Act.
Some
features,
more
readily than
others,
fall into
perspective.
It
may
be
accepted
that s.
13(1)
gives the
Court
a
discretion to
decide whether
it
will
make
the assessment
when
an
order
is
sought
"in respect of the benefits derived
by
the
person as the
result of
committing
the offence".
The word
"may"
which
is
used
in the
subsection
can be understood as
a
true
permissive
"may".
However,
once
the
benefits
has been
assessed
and
the decision
value
of the
made
to
order
payment
of
a
pecuniary penalty then
it
is
the assessed value
(with
two
exceptions not relevant in the
present
case)
which
must be
ordered
to
be
paid.
There
is
no
further· discretion
after
the
assessment has
been
made
to
order
that part
only
of
the assessed value
shall
be
paid
by
way
of penalty.
Once
the
payment
of the penalty
has
been
ordered
the
Crown
has
the
benefit of the order as
creating
a
debt
due
to
it
which
it
is
able
to
enforce
in
civil
proceedings.
Ifs.
13
stood alone
it
might be
thought obvious
enough
that
it
is
the
overall
advantage
which
a
defendant
has
achieved
for
himself
that is
to
be
made
the subject of the
order.
Take
the
simple
example
of
a
sale.
If
a
person
of
criminal
intent
purchased
a
quantity of
drug
for
a
certain
price
and
then
sold
it
for
the
same
figure then
on no
ordinary
use
of
language co~ld
he
be
said
to
have
derived
any
benefit
as
a
result
of
committing
the offence
involved. Further
provisions
ins.
14
however
introduce
the
major
difficulties.
-- 12 of 22 --
12
As
to s.
14(2)
it
does not,
I
believe, cause particular
difficulty
when
it
is carefully
examined.
It is
not said that
any
of the five features
which
the sub-paragraphs
direct shall
be examined must
in the
end be
utilised to
produce the
assessment. Indeed the indications
which
the various
sub-paragraphs provide
may
be
conflicting or at least
they
may
not
all
point
towards an
identical figure.
The
Court
is
directed to
regard
"all
or
any"
of
them.
A
principal
consideration
is
that
the
Court
is
not directed to
adopt
a
figure to
which any
of these
headings might
lead.
merely
directed to
have
regard
to
them.
It
is
To
take
a
simple
case,
if
it
is
shown
that
a
defendant
came
into
possession of
a
certain
sum
of
money
effecting
a
sale
of
a
prohibited
drug then nothing
ins.
14(2)(c) obliges
the
Court
to
assess the derived
benefit
at
that
figure
although
the
Court
is
obliged
to
regard
that
sum
in
making
its
assessment.
So
far, this
sits
quite easily
with the
concept
-
introduced
by
s.
13 ( 1 )
which
requires the
Court
to
consider
whether
it
will
make
an
order for the
payment
of
the
value
of
benefits
derived as
a
result
of
the
commission
of
an
offence.
It
may
be
said
that
the various
matters
referred to in
s.
14(2)
are highlighted for
the
Court's
attention
but
none
of
them
individually
nor
all
of
them
together
are
made
determinative of the
amount
of
the
assessment.
The
Court
is
still
left
with
the task of considering the
advantage
or
benefit
flowing
to
the offender
as
a
result
of
his
wrong-doing
in contradistinction to
the
amount
of
any
property
or
sum
-- 13 of 22 --
13
which, perhaps fleetingly, passed through his
hands without
leaving
him
in
a
position
where he has derived advantage.
However,
s.
14 (
8)
disturbs conceptions which might otherwise
be
confidently adopted.
While
the Court
is
invited
bys.
14
to
have
regard to the
various matters there
listed
it
is
not obliged to
give
any one
or
more
of those factors
any
particular
weight
when
it
is
deciding whether
in the circumstances
to
make
an assessment
at
all
and
when
it
is
calculating
the figure
which
it
will arrive
at
in
any
assessment
which
it
does
make. The
Court
is,
however,
constrained to
apply the
principle indicated
by
s.
14(8)
when
it
makes
an
assessment.
Some
tension
can
arise
between
the application of the principle
ins.
14(8)
and
the
more
fundamental
task
pointed
to
bys.
13
of
deciding
upon
the
benefits or
advantages
derived
from
the
commission
of.
the
offence.
I
would
not consider
that
any
time sequence
is.indicated
by
the phrase "as the
result
of"
which
appears
in
subs.
13(1)
with
reference
to
the
commission
of the offence.
It
is
not
necessary
that
the relevant benefits
come
to
hand
after
but
merely
that
they
come
from
the
commission
of
the offence.
For
example,
a
vendor
of prohibited
commodities
may
be
paid
in
advance
of delivery
on
a
sale.
While
that
advance
payment
may
be
part
of the
sale
it
will
not
come
after
a
time
when
the
sale
and
the offence are
completed. There
will
nevertheless
be
no
difficulty
in
deciding
that
the
advance
payment
of the
price
could
qualify
as
a
benefit
derived
by
the
vendor
as
a
result
of
committing
the offence.
-- 14 of 22 --
14
It
has already been suggested that the notion of "benefit
derived"
which
is referred to in s.
13 conveys the idea of
some
lasting or non-transient advantage accruing to
a
respondent.
The
idea
may
be
better
expressed
by
saying that
the benefit
must be something which
is
received
by
or
comes
home
to
the respondent
on
his
own
account.
Mere
temporary
possession of
an item
of
value
which
is
never received
by him
on
.his
own
behalf
would
not
qualify.
The
simple passage of
funds
or
goods through
the
hands
of
an
agent
acting
on
behalf
of another
would
not qualify since
no
benefit
is
derived.
This
seems
to
have been
accepted
by
Willcox
J. citing
Merling
J.
in
Cornwell v.
The
Commissioner
of Australian
Federal
Police
(supra)
at
502
where
it
is
said
that
it
is
not
"property passing
transitorily
through
(the)
hands"
of
a
respondent
which
is
relevant
but property
at
the respondent's
"ultimate disposal".
I
think
that
if
a
person
is
asked
by
a
principal
to carry an
envelope
containing
money
to
a
third
party stationed
at
some
point
and
receive
from him
a
parcel of
drugs
and
carry
them
back
to
the
principal
then
if
these
instructions
are carried
out
by
the agent
no
benefit will
have
been
derived
by him
on
these
facts
alone notwithstanding
his
temporary
possession
of
items
of
value.
I
do
not
however
think
that
a
trader or
vendor
is
entitled
to
escape
the
reach
of
s.
13
simply
because
he
may
have
a
pre-existing obligation to
pay
an
amount
to
his
supplier arising
out
of
the
acquisition of
stock
which he
then
proceeds
to trade.
When
he
sells
for
money
the
commodity
which
is
at
his
disposal
I
do
not
think
there
is
difficulty
in
-- 15 of 22 --
15
deciding that
he derives
a
benefit even though he may owe
money
to his
own
supplier in respect of his original
acquisition of the stock.
The
subsection does not necessarily
direct the Court
to
a
calculation of
profit or overall profit
on
the transaction
which
constitutes the offence
al
though
in
particular
circumstances the matter
may come down
to that.
I
would
consider
that
the sale
by
an owner
or controller of
a
commodity
for
no
overall profit
calculated
on
the acquisition
and
disposal of the
particular
commodity,
nevertheless gives
the
vendor
a
benefit
within the
meaning
of the
legislation
equal
to the price
received.
be something which
could
detriment accruing
at
the
This
may
be
so
even
if
there
may
be
regarded as
a
corresponding
same
time,
i .
e. parting
with the
goods
in
exchange
for
the
price.
If
the
sale
is
of
an
illegal
commodity
such
as
narcotics
then
converting the
illegal
possession
of
that
commodity
into freely negotiable
currency
would
be
a
benefit or
advantage
for
anyone
who
was
himself
a
non-user.
Further,
subs.
13(1)
directs attention to
the
benefit
occurring as
question
and
if
the
a
result
of
committing
the offence
in
relevant
offence
is
a
sale
then the
benefit,
the
sale price,
is
received as
a
result
of
committing
that
offence.
It
is
not
directly
relevant
that
at
an
earlier
time
the
vendor
may
have
paid out
money
to
acquire the
goods
in
question.
That
earlier
payment
does
not reduce
the
amount
of
the
benefit
which
comes
to
the
vendor
from
the offence
which
is
constituted
by
the
sale.
Some
situations
may
be
akin
to
that
of the
courier in
the
simple
example
given
above
of the
journey
made
to deliver
a
-- 16 of 22 --
16
parcel, receive another package
in
exchange and bring that
back to the starting point.
What
is
the position
if
someone
agrees to
sell
an
illegal
commodity and
either receives the
sale price paid in
advance and
uses
that to
make
the purchase
or, there being
no advance payment,
uses funds
of his
own,
then journeys
to
a
supplier to furnish himself with
a
commodity
to trade
and
returns to his
purchaser to
complete
the sale?
To
simpli_fy
the
example assume
that
he
sells
for
the
same
price
as
he
pays.
The
question then
is,
has he
within the
meaning
of s.
13(1)
derived
a
benefit
as
a
result
of
the sale? In
this
example
I
would be
disposed
to think
that
he
has not
and
fundamentally
that
is
because
he
has
bought
the
commodity
to put himself
in
the position to
make
the
sale
and
thus the
acquisition
and
the
payment
of the
purchase
price
results just
as
much
from
the
arranged
sale
as
does
the
receipt
by him
of the
sale price.
It
is
not
reasonably
possible to
say
that
as
a
result
of
committing
the
offence,
that
is,
making
the
sale,
he
has
derived
a
benefit.-
The
acquisition
as well as
the disposal
is
in these
circumstances
part
of the
picture
which
s.
13(1)
directs
us
to
consider.
This
answer, however,
is
given without so
far
considering the
difficulties
introduced
bys.
14(8).
Before
turning
to s.
14(8)
attention
should
be
given
to
the fact that
the present
respondent
was
charged
with
and
pleaded
guilty to
an
offence
of
trafficking
between
two
dates
specified
which
are
almost
a
year
apart,
31
July,
1987
to
8
June,
1988. Simple examples
based
on
a
sale
may
not
apply
in
her
case.
Her
actions
in
acquiring
heroin
for
supply
and
her
-- 17 of 22 --
17
payments on her purchases of trading stock falling within the
period charged are
all part of her trafficking.
Her preceding
payments
to acquire stock to trade
and
her subsequent payments
to her supplier
if
she happens
to
have bought on
credit will
all
be
part of the circumstances of the offence of trafficking
which
is
charged and
will therefore
have
to
be
taken
into
account
in
deciding
what
benefit
she has derived
from
the
commission
of the offence.
The
evidence
will
need
to
be
looked
to
and
a
decision
made
on
it
in
deciding
on
the
amount
of the benefit overall.
An
overall perspective
is
required in
this
case
because
the relevant
offence
is
one
of
trafficking
between
two
specified dates.
A
similar
approach
involving
recognition of acquisition costs
may
not
have been
appropriate
if
a
simple offence,
such
as
a
sale,
had been charged.
The
application of the
approach
now
suggested
would
seem
to lead to
a
conclusion,
which
is either
as the
respondent
suggested
in
.
argument
or
is
at least
closer to
it
than
was
suggested
by
counsel
for the applicant
director.
But
now
s.
14(8)
must be
taken
into
account.
Section
14 (
8)
declares
that
"any
expenses
or
outgoings"
of
a
respondent
"in
connection with
the
commission
of
the
offence"
shall
be
disregarded
in
any
assessment
which
is
made.
If
a
sale
of
narcotics
is
under
consideration
it
is
easy
to think
that travelling
expenses
and
also
accommodation and
living
expenses
while,
for
example,
a
sale
is
being
transacted
or
concluded
will
be
caught
within
subs.
(8)
and
the question
is
whether
in
such
circumstances
or in
circumstances
like
those
of
the present case,
even
more
than
this
is
intended.
-- 18 of 22 --
18
Is the Court directed to exclude the acquisition costs of the
prohibited product which
is
traded?
I am
inclined to think
not because
it
would
not
fall
within the ordinary scope
of the
phrase
ins.
14(8)
to
hold
that
it
is.
In the case of
a
sale,
a
more
natural
reading
would
say
that
the cost of the
preceding acquisition of the traded
commodity
does
not occur
"in
connection with" the subsequent
sale
but
is
something
independent
of
it
and
may,
indeed,
constitute
a
separate
offence
and
precede the
sale
by
a
long time
interval.
It
may
occur before the sale assessed in the
example
has been even
contemplated. Therefore,
I
consider
that
it
is
nots.
14(8)
which
would
cause
the
Court
to refrain
from
deducting
the
acquisition cost
when
an
assessment
is
made
under
s.
13(1)
in
the case
where
a
sale of
an
illegal
commodity
is
the
relevant
offence.
In
such
a
case
1
other
reasons, discussed
above,
more
directly
connected
with·
the
wording
of
s.
13 (
1),
might
cause
the
Court
to
leave out of
account
the costs of acquisition
when
it
is-looking for the
benefit
derived as
a
result
of the
sale.
In the present
case
the
relevant
offence
is
not
a
simple
sale
but the
more
compound
matter of
trafficking
within the
dates
charged.
It
embraces
all
of the individual transactions
and
activity
which have
already
been
outlined.
I
consider
that
it
should
be
accepted
that
acquisition
cost
is
a
cost
which
occurs as
an
integral part
of
the
trafficking.
By
contrast
a
preceding
acquisition cost
is
not
necessarily
an
integral
part
of
a
sale
which
subsequently occurs.
-- 19 of 22 --
19
While the matter
is far
from being completely clear
I
think the preferable construction of s.
14(8)
is that the cost
of
an
acquisition,
which
is itself part of the
activity of
trafficking,
trafficking.
When a
trafficking.
is
not
a
cost incurred "in
connection with" the
trafficker
pays
to
purchase
his stock
he
is
His payment
has
a
different character
from
the
payment he
may make
to
a
taxi driver
as
he
travels to
a
destination to
pursue
his trafficking
operations.
The
latter
payment,
but not the
former,
I
would
regard as
comprehended by
s.
14(8).
Similar
reasoning
to that
which
I
have
just
expressed
appeared
to
find
favour with Pincus
J.
in
Cornwell
(supra)
at
513-514.
I
do
not regard anything
said
by
the
-High
Court
in
R.
v~
Smithers
ex
parte
McMillan (1982)
152
C.L.R.
477
as
dealing
with the
point of
distinction
I
am
now
making.
Speaking
there of the
similarly structured
Commonwealth
provision the
Court
was
able
to
say
that
it
was
gross
rather
than
net benefits
which had
to
have
their
value
assessed.
More
detailed
consideration of
this
aspect
was
not undertaken
in that
case.
While
I
am
suspicious
of
some
of
the
respondent's
testimony,
I
am
in the
end
disposed
to
act
upon
it
to
the
extent of
finding
that
in
the
March
transaction
she
paid
$7,000.00
to
acquire heroin
which
she
sold
for
$7,000.00
and
that
she
was
given
in addition
$300.
00
r·eimbursement
for
airfares.
The
airfare
expense
was
incurred
in
connection with
the
trafficking
within the
meaning
of
s.
14(8). Therefore
it
-- 20 of 22 --
20
must be disregarded as
a
deduction
when
benefit derived is
being assessed.
I
find therefore that
$300.00
is
the
amount
of the benefit derived
on
that occasion.
In respect of the
30 May 2
June
transaction the
respondent said that the acquisition cost
was
$6,000.00 and
that
Hermann
purchased
by making two payments which
totalled
$8,000.00.
I would
accordingly assess the
amount
of the
benefit
derived as $2,000.00
disregarding, pursuant
to s.
14(8), the
expenses, roughly
amounting
to
$400.00,
which.
were
spent
on
airfares,
cab
fares
and lunch
for
Jacobson and
disregarding also
the respondent's
claim
that this
transaction
involved
a
partnership
arrangement with Jacobson.
I
think
that
the
respondent
dealt
with
Hermann
as
full
principal
and
directed
Jacobson
pursuant
to
her
own
arrangement
to
pay
Jacobson'
s
expenses
and
perhaps
some
further
sum.
These
outgoings
would
all fall
within the
category of
s.
14(8)
expenses.
In the
final transaction
on
7
June
which
was
not
completed she
·was
paid
$1,000.00
as
she
says
in
advance
to
cover Jacobson's
expenses. This
sum was
received
in
the
cour~e
of the respondent's
trafficking.
Any
of Jacobson's
costs
which were
intended
to
be covered
would
fall
within the
category
of
expenses
to
be
disregarded
under
s.
14(8).
When
the
value
of benefit to the
respondent
is
being
assessed
this
sum
too should
be
added.
I
would
accordingly
assess
the
value
of
the
benefits
shown
to
have been
derived
by
the
respondent as
a
result
of
her
trafficking
as
$3,300.00
in
total.
None
of
the
matters
-- 21 of 22 --
21
listed for consideration
ins.
14(1) would cause
me
to depart
from
assessing at that figure.
I
see
no
reason whatsoever
to
refrain
from making an assessment
or refrain
from
ordering the
respondent
to
pay
the
amount which
I
do
now
assess.
The
legislation is
very imperfectly constructed
and
far
from
clear.
It
is likely to continue to trouble
judges
called
upon
to
make
assessments unless
amendments
are
made
clarifying
more
precisely
what
the Court
is
intended
to
do
or
making
clear.er the
range
of discretion
which
is
intended
to
be
conferred
upon
the
Court.
It
is
likely that
widely
varying
approaches
may
be taken
by
judges
in
broadly
similar
situations
and
this is really
most
undesirable.
If
the
legislation
is
not
amended
promptly
it
is
to
be
hoped
that
an
authoritative
determination
will
provide the necessary
guidance even though, so
far,
the appeals
which have been
brought
reveal
no
uniform
approach.
I
order
that
the
respondent
pay
as
a
pecuniary
penalty,
pursuant
to
the provisions
of
s.
1 3
of
-the Act
the
sum
of
$3,300.00.
It
is
asked
that
I make
no
order for costs.
-- 22 of 22 --
Official source: https://www.sclqld.org.au/caselaw/QSC/1991/216