The AAT has rejected a taxpayer’s appeal and held that he was not entitled to the dependant spouse tax rebate in the 2011 year in respect of his fiancé.
The Tribunal had to decide whether the taxpayer was entitled to claim the dependant spouse tax rebate under s 159J of the ITAA 1936 in his tax return for the income year ended 30 June 2011. In that year, the Tribunal said the taxpayer considered himself committed to marry his fiancé but they did not “get married legally”, as he put it, until 27 July 2011.
The Commissioner audited the taxpayer and determined that he did not have a spouse for the 2011 year and was, therefore, not entitled to claim the dependent spouse rebate in the amount of $2,286. Penalties of 25% were imposed on the tax shortfall on the basis that the taxpayer failed to take reasonable care.
After reviewing the case, the Tribunal concluded that the taxpayer was not entitled to claim the dependant spouse rebate because his fiancé was not his spouse in the relevant year. It said the taxpayer was not at any stage living together with his fiancé for the relevant year.
The Tribunal also considered she was not wholly dependent on the taxpayer and nor was she a resident of Australia during the relevant year (as she resided in Tehran).
(AAT Case [2014] AATA 214, Re Farshidian and FCT, AAT (sitting as the Small Taxation Claims Tribunal), Lazanas SM, AAT Ref: 2013/1756, 11 April 2014, but only just released by the Tribunal.)
[LTN 220, 13/11/14]