The AAT has dismissed an application for review of an objection decision where the taxpayer, despite having his objection allowed in full, was still not happy with the outcome.
In the 2019 income year, the taxpayer received a lump sum compensation payment in settlement of a Comcare claim. The payment reflected 3 years of compensation. The ATO issued an assessment for 2019 including the whole amount in the taxpayer’s assessable income (the year of receipt). The taxpayer, however, objected on the basis that the amount was assessable over the 3 income years in question.
Although the ATO confirmed the amount was assessable in the year of receipt, it allowed the objection in full on the basis that the taxpayer was entitled to the benefit of the arrears of income rebate in Div 17 of the ITAA 1936. When the rebate was applied, the amount of tax he was required to pay in 2019 was effectively the same as if the amounts had been attributed across the 3 income years.
For whatever reason, the taxpayer was unhappy with that outcome and applied to the AAT for review of the ATO’s objection decision. The AAT, however, decided that the taxpayer was not a person “dissatisfied with” the objection decision in the sense intended by s 14ZZ of the TAA. The AAT then decided to dismiss the application under s 42B of the AAT Act on the grounds that there was no reasonable prospect of success.
(McAuliffe v CofT [2021] AATA 3235, AAT, McCabe DP, 18 August 2021.) [LTN 176, 13/9/21]
[Tax Month – September 2021] 3.10.21