The ACT Civil and Administrative Tribunal has refused a taxpayer’s application seeking an extension of time to apply for review of the decision of Commissioner for ACT Revenue affirming the imposition of 50% penalty tax on unpaid land tax.
In October 2003, the taxpayer (a real estate agent) purchased an investment property and informed the ACT Revenue Office that the property would be rented as soon as a tenant was found. However, the taxpayer did not notify the ACT Revenue Office when a tenant was found. In March 2012, following requests for information from the ACT Revenue Office, the taxpayer informed that Office that the property had always been rented and that he did not notify the Revenue Office as he thought that was the property manager’s job. The Commissioner then issued an assessment notice for unpaid land tax, 50% penalty tax and interest totalling $57,000. The Commissioner also issued assessment notices for unpaid land tax in relation to 2 other investment properties. The taxpayer sought a reduction of the penalty tax. However, the Commissioner on 6 July 2012 declined to reduce the penalty tax payable. The taxpayer sought review of the decision.
The Tribunal held it did not have the power to sufficiently extend the period for filing the application for review. In this case, the Tribunal found it could only extend the period at most to 4 October 2012. Even if it did have the power to sufficiently extend the period for filing the application for review, the Tribunal said it would not be appropriate in the circumstances of the case to exercise that power.
(Peden & Comr for ACT Revenue (Administrative Review) [2013] ACAT 31, ACT Civil and Administrative Tribunal, Daniel M, 3 May 2013.)
[LTN 85, 7/5/13]