The Federal Court has largely upheld an AAT decision to disallow taxpayers’ claims for fuel tax credits.
The taxpayers in partnership conducted a sawmilling business in northern NSW. One of the partners also conducted a separate sawmilling business and a farming business on his own property in northern NSW. The partner and the partnership both claimed diesel fuel credits and diesel tax credits in respect of equipment used in the businesses. After an audit, the Commissioner did not accept the taxpayers’ claims for diesel fuel credits and diesel tax credits in respect of fuel sourced from one particular supplier. Amended assessments and penalties were issued. The taxpayers sought review before the AAT and the Tribunal dismissed their appeal (in AAT Case [2011] AATA 939, re RJ Borcherdt & GP Scott Trading as Nymboida Native Timbers and FCT). They then appealed to the Federal Court.
The Court was of the view that the AAT decision should stand and the application to set it aside be dismissed (other than to the limited extent agreed by the parties). The Court ordered that the matter be remitted to the Commissioner to allow a claim for id=”mce_marker”1,105.30, in accordance with the Commissioner’s concession before the AAT. Otherwise, the Court held that the application be dismissed.
(Borcherdt v FCT [2014] FCA 56, Federal Court, Collier J, 11 February 2014.)
[LTN 48, 12/3/14]