The AAT has affirmed the Commissioner’s decision refusing a taxpayer’s PAYG credit claims made in his 2011 and 2012 income tax returns.
The taxpayer was a director and shareholder of a company, which was wound up in March 2012. In his 2011 and 2012 tax returns, the taxpayer claimed PAYG credits for amounts (around $91,000) he said the company had withheld. Following an audit, the Commissioner issued amended assessments refusing the credit claims and imposed an administrative penalty of 50% for “recklessness”.
The Tribunal held the company did not withhold amounts as contended by the taxpayer. Among other things, the Tribunal said the “informality of the [company’s] payment practices, and the absence of any relevant accounting procedures, permit no more than the observation that [the company] made payments to [the taxpayer], or for his benefit”. In conclusion, the Tribunal affirmed the Commissioner’s assessment decisions. It also held the circumstances did not warrant remission of the penalties imposed.
(AAT Case [2014] AATA 499, Re Cameron and FCT, AAT, Ref Nos: 2013/4621-4622, Taylor SM, 22 July 2014.)
[LTN 140, 23/7/14]