A taxpayer has been unsuccessful before the Federal Court in seeking relief under s 39B of the Judiciary Act 1903 and ss 5 and 6 of the Administrative Decisions (Judicial Review) Act 1977.
The “decision” or proposed “decision” which was challenged by the taxpayer related to an interim audit report prepared and issued by the ATO as part of a GST and fuel tax credits audit. The report identified 6 issues and set out the “Decision” and “Reasons for Decision” with respect to each issue. It also contained a summary of adjustments proposed to be made to the taxpayer’s BASs as a result of the interim audit and statements with respect to penalty.
In the originating application, the taxpayer sought a declaration that the interim findings were ultra vires, and injunctions restraining the ATO from proceeding to a final decision on the audit or issuing any further notices in the exercise of its powers. He also sought an injunction restraining the ATO from using any information obtained in the audit investigation.
The Court concluded the taxpayer’s claim, insofar as it was a claim under the Judiciary Act, lacked a reasonable prospect of success, and, insofar as it was a claim under the ADJR Act, was not competent. Accordingly, it dismissed the taxpayer’s claim.
(Halls v FCT [2014] FCA 775, Federal Court, Besanko J, 25 July 2014.)
[LTN 143, 28/7/14]