The ATO Wed 5.6.2013, released a Decision Impact Statement on the Federal Court’s decision in Denlay v FCT [2013] FCA 307.
In that case, the Federal Court granted the application of husband and wife taxpayers to quash the Commissioner’s decision to issue garnishee notices to their superannuation fund. It did so on the grounds that the “decision was so unreasonable that no decision-maker, acting reasonably, could have arrived at such a decision” in the circumstances. The Commissioner did not appeal.
Broadly, the ATO said it will continue to apply the stated policy in para 112 of the PS LA 2011/18 in relation to considerations of whether a garnishee would significantly prejudice the tax debtor’s rights in pursuing appeals. It also said it will take into account the daily living expenses of taxpayers.
[LTN 107, 5/6/13]