Peter Warr's failure to pay tax on his overseas consultancy work was made public when he took a claim for compensation for a car accident to the ACT Supreme Court.

Professor Warr won $316,500 in damages after his neck was injured while driving to a Brumbies match at Canberra Stadium in February 2007.

He suffered headaches and neck and shoulder pain as a result, and treatment provided only temporary relief.

The court heard the headaches had resolved but he still had restricted movement in his neck, which caused problems when reverse parking.

Medical experts agreed he suffered degeneration of the cervical spine that was asymptomatic before the accident.

Professor Warr gave evidence that the injury had not impacted on his work at the university.

But the renowned agricultural economics expert, now 66, claimed the accident caused financial loss as it ruined his plans to retire from the university at age 65 and become a consultant.

He now plans to continue at the university, with a reduced focus on overseas consultancy work to generate his income.

The court heard the ANU encouraged Professor Warr to take part in paid work on research projects in South-East Asia.

He said he was forced to turn down a number of lucrative contracts as the long-haul flights and travel on rural roads aggravated his neck injury.

It was while discussing this lost income that the court accidentally discovered Professor Warr had not reported overseas earnings to the Australian Tax Office.

He told the court he thought the income had been tax free and did not need to be reported.

After the revelations, Professor Warr paid additional tax with interest for two previous financial years, but did not tell the tax office of any overseas income for earlier periods. Professor Warr told the court his accountant had advised him these were the only ones he could amend.

Master David Harper, in a judgment published this week, said he had given “considerable reflection” in whether to publish his misgivings about Professor Warr’s financial conduct.

“This leaves me with an uncomfortable feeling that, whilst the plaintiff might be utterly honest and reliable about his injuries, symptoms and the severity of his neck pain, his evidence might be less reliable where it was about financial issues which might have an effect on his financial position,” Master Harper wrote.

“Whilst I generally accepted the plaintiff as a witness of truth, and accepted evidence of doctors who had seen him to the effect that he had not sought to amplify or exaggerate his symptoms, I thought that his interpretation of the advice he had received from the accountants was somewhat self-serving.

“I gained the strong impression that the plaintiff was not motivated to take any further steps in that regard, on the basis that it was unlikely that the tax office would take any initiative towards investigating it, and that to make a full disclosure might cost him a lot of money.”

However, Master Harper found the accident was the major cause for his neck pain, despite suffering a degenerative condition.

Master Harper awarded Professor Warr $316,500, which included $90,000 in general damages, $7600 treatment expenses and $185,000 for loss of earning capacity.

“I am satisfied that the plaintiff has suffered a serious diminution in his enjoyment of life, and a degree of permanent neck pain and symptoms in his left arm,” he wrote.