In a decision handed down on Wed 1.2.2012, the NSW Administrative Decisions Tribunal affirmed the Commissioner’s decision to impose 25% penalty tax and interest at market rate on 2 taxpayers with respect to a payroll tax default for the period 1 July 2006 to 30 November 2010 inclusive.
The relevant decisions of the Commissioner resulted from a decision that the taxpayers constituted a “business group” for payroll tax purposes during the relevant period. The taxpayers had been grouped on the basis that they had the same directors (a married couple). In essence, the directors alleged they were not informed of their payroll tax obligations by their accountant. The taxpayers have made arrangements to discharge their tax obligations by instalment; however, they dispute the penalty tax and interest imposed.
The Tribunal noted that interest at the premium rate had been remitted. In relation to the 25% penalty tax for the tax default, the Tribunal held the taxpayers had not discharged the onus of demonstrating that their reliance on external advice regarding payroll tax was reasonable in the circumstances. (The Tribunal noted it made no adverse finding against the accountant.) It also held there were no exceptional circumstances that would justify remitting the interest.
(AES Wiring Pty Limited & Anor v Chief Comr of State Revenue [2012] NSWADT 11, NSW Administrative Decisions Tribunal, Block JM, 1 February 2012.)
[LTN 21, 2/2]