The ATO has issued a Decision Impact Statement on the Full Federal Court’s decision in Chemical Trustee Limited v DCT[2014] FCAFC 27. The Statement sets out the ATO response to the case which it said concerned whether the Commissioner, having obtained judgment for an income tax debt, was prohibited from obtaining judgment for an income tax debt arising out of an amended assessment for the same income years. The taxpayer had argued that the Commissioner was prevented from obtaining judgment in relation to the amended assessments.
At first instance, the Federal Court rejected the taxpayer’s arguments and granted judgment to the Commissioner. The taxpayer then appealed to the Full Court but that appeal was dismissed. The ATO said that on 15 August 2014, the High Court refused the taxpayer special leave to appeal on the basis that the Full Court’s decision and the primary judge’s decision were correct.
The ATO said it respectfully agreed with the views expressed by the Federal Court and the High Court. It said these accord with the way in which the Commissioner currently administers the income tax legislation and seeks to recover debts arising from amended assessments.
[LTN 172, 5/9/14]
[2014] FCAFC Catchwords
PRACTICE AND PROCEDURE – res judicata and issue estoppel – Anshun estoppel – abuse of process – Income Tax Assessment Act 1936 (Cth) ss 173, 177 – Taxation Administration Act 1953 (Cth) Sch 1 Item 255-5(1) – Income Tax Assessment Act 1997(Cth) s 5-5(2) – judgment previously obtained enforcing notices of assessment – notices of amended assessment subsequently issued in respect of same tax years – whether earlier judgment precluded applicant from bringing separate proceeding in relation to amended notices – whether primary judge erred in holding notices of assessment not invalid – whether notices inconsistent