The ACT Civil and Administrative Tribunal has affirmed the decision of the Commissioner of ACT Revenue to impose on a taxpayer 50% penalty tax and interest on unpaid land tax for the relevant period.

The taxpayer owned the subject rental property but submitted that she was not aware of her land tax liability. Among other things, the taxpayer submitted that she was financially illiterate, socially isolated etc and that the penalty tax and interest should be waived as she had taken reasonable care. The taxpayer sold the property in March 2012 and following the purchaser’s request for a land tax certificate for the property, the Commissioner became aware of the rental status of the property. The Commissioner then issued a land tax assessment, including 50% penalty tax and interest for the period 1 April 2003 to 31 March 2012 (land tax was not imposed during 2010 and 2011).

The Tribunal accepted the taxpayer had no intention to avoid land tax, but said ignorance of the law was not an excuse for failing to meet legal obligations. It held the penalty tax was properly imposed and refused remission of the penalty. In relation to the interest, the Tribunal said it was satisfied that neither the imposition of interest, nor its remission could be reviewed by the Tribunal.

(Theron & Comr for ACT Revenue (Administrative Review) [2013] ACAT 33, ACT Civil and Administrative Tribunal, Symons PM, 17 May 2013.)

[LTN 101, 28/5/13]