The AAT has refused a taxpayer’s request seeking a remission of an administrative penalty.
In September 2012, an administrative penalty (approx. id=”mce_marker”1,000) was imposed on the taxpayer on the grounds that the taxpayer had failed to take reasonable care. The penalty was issued after an ATO audit was completed, which had identified that in relation to 8 BASs the taxpayer had failed to report the PAYG withholdings made or had overstated the amounts, disclosing a liability to the ATO of around $44,000. The taxpayer did not dispute the penalty but sought a remission of the penalty.
The AAT did not consider there were grounds, which would justify remission in the circumstances. The taxpayer contended the BAS documentation was difficult to complete; however, the Tribunal said this explanation was difficult to sustain given the taxpayer had previously completed correctly BAS documentation. The Tribunal said it was satisfied there was a failure by the taxpayer to take reasonable care in completing BAS documentation and affirmed the administrative penalty.
(AAT Case [2013] AAT 808, Re Allboat Transport Pty Ltd and FCT, AAT, Ref No: 2013/1899, McDermott SM, 14 November 2013
[LTN 222, 15/11/13]