The ATO Thur 9.10.2014, issued a Decision Impact Statement on AAT Case [2014] AATA 572, Re The Taxpayers and FCT. The AAT was required to make findings in relation to: an agency issue; superannuation expenses, interest expenses, carried forward tax losses, quantum of remuneration received from contracts, Div 7A deemed dividends, and penalties.
Broadly, the AAT accepted, in the main, the submissions and evidence presented by the taxpayers. As a result, the relevant GST and income tax assessments (and penalty assessments) were remitted to the Commissioner for recalculation in accordance with its orders.
The ATO said it accepts that the decision on income tax and GST was reasonably open to the Tribunal on the facts as found. However, it said that it was not clear whether the Tribunal’s decision to reduce all of the penalties imposed under s 284-75 of Sch 1 to the TAA to nil was influenced by the conclusion that there was no loss to the revenue.
[LTN 195, 9/10/14]