ATO sues barrister over $770k tax debt

By the Editorial Team · Friday, August 28, 2026

The Australian Taxation Office filed and later discontinued legal action against barrister Peter Dunning over a $770,000 unpaid tax debt after he promptly settled the amount. This resolution comes amid speculation about Dunning's possible appointment to Queensland’s Court of Appeal, raising questions about the impact of the tax issue on his judicial prospects.

The Australian Taxation Office (ATO) initiated legal proceedings against prominent barrister Peter Dunning over an unpaid tax debt totaling $770,000, but the matter has since been resolved. The Deputy Commissioner of Taxation filed the claim in Brisbane’s Supreme Court on May 19, targeting Mr. Dunning, a former Queensland solicitor-general and former president of the Australian Bar Association.

Mr. Dunning, who is recognized as one of Australia’s highest-earning commercial barristers with reported daily fees of up to $25,000, confirmed that the outstanding tax amount had been settled promptly upon notification of the claim. Speaking to media, he said the payment was made in full in accordance with the claim’s terms, which subsequently led to the discontinuation of the legal proceedings. He declined to explain the circumstances that led to the initial tax arrears or unpaid debt.

According to Queensland Bar Association guidelines, barristers are expected to demonstrate the "highest level of frankness and candour" in disclosing matters relevant to their suitability to hold a practising certificate, including outstanding tax debts and late or missing lodgments. It remains unclear whether this disclosure requirement applies solely to initial practising certificate applications or also to annual renewals. Mr. Dunning stated he was not obligated to reveal the court proceedings during his recent practising certificate renewal.

The ATO declined to comment on the specifics of Mr. Dunning’s tax affairs, citing confidentiality obligations. An application by media to access details of the claim through the Brisbane Supreme Court was denied by the court’s deputy registrar. However, shortly after inquiries to the ATO, the Deputy Commissioner filed a notice discontinuing the entire legal proceeding, effectively closing the case.

Peter Dunning holds a significant profile in Queensland’s legal community. He served as solicitor-general from 2014 to 2019 and led the Australian Bar Association for two consecutive terms, from 2022 to 2024. Beyond his legal practice, he has notable ties to politics, having served as the Queensland Liberals’ constitutional and rules chairman in 2008, prior to the formation of the Liberal National Party. He is also known for his longstanding legal representation of billionaire Clive Palmer, with court documents from last year indicating legal fees amounting to $4.6 million charged to Palmer since 2016.

The tax dispute surfaced amid speculation regarding Mr. Dunning’s potential appointment to Queensland’s Court of Appeal, where he has been considered a leading candidate to succeed Court of Appeal president Debra Mullins upon her retirement next February. It remains uncertain how this episode might influence any upcoming judicial appointments.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.