The ACT Civil and Administrative Tribunal has rejected arguments, by husband and wife taxpayers, that they provided sufficient notice to the Commissioner of ACT Revenue, in relation to their land tax liabilities. It also found that there was no basis for remission of the penalty tax imposed.

The husband and wife taxpayers were the owners of a property that was rented out, from October 2011, which gave rise to a land tax obligation, until it was sold in September 2016. The Commissioner started an investigation on the property in August 2016 when the purchaser of the property requested a certificate of rates land tax and other charges. Subsequently in late August 2016, the Commissioner issued an assessment for land tax for $8,072.20, compromising land tax together with interest and penalty tax of $2,459.43.The taxpayer contend that they gave notice of the rental land status of the property to the Commissioner by posting a direct debit request with an accompanying letter dated 30 January 2014.

The Tribunal could not be satisfied, on the evidence, that the direct debit request and accompanying letter was sent, by the taxpayers, to the Commissioner on 30 January 2014. It also found that there was no basis for remission of penalty tax. Therefore, the Tribunal confirmed the decision of the Commissioner to disallow the taxpayer’s objection to penalty tax imposed on the land tax assessed

(Samani & Anor v Comr for ACT Revenue [2017] ACAT 93, ACT Civil & Administrative Tribunal, Foley SM, 7 November 2017).

About the author