A taxpayer has been unsuccessful before the AAT in seeking to be released from his tax liabilities under s 340-5 of Sch 1 of the TAA.
As of 21 February 2014, the taxpayer’s tax debt amounted to around $81,000. The taxpayer contended his income tax debts have arisen as a result of his unauthorised early access of superannuation benefits in order to support his gambling addiction.
Although acknowledging the taxpayer’s intentions to control his gambling addiction, the Tribunal was not satisfied the taxpayer’s situation, if required to pay the tax debts, would be of serious hardship.
Even if it were a case of serious hardship, the Tribunal said it would not exercise the discretion to grant relief.
- The Tribunal noted the taxpayer was earning a “high income” in the mining industry and that his household expenses included discretionary spending that could be reduced.
- It said the sale of the taxpayer’s car or investment property would also significantly reduce his tax liability.
- Furthermore, it noted the taxpayer had preferred the repayment of other debts to his tax debt.
Accordingly, the taxpayer’s application was dismissed.
(AAT Case [2014] AATA 362, Re Huckle and FCT, AAT, Ref No: 2013/6125, Cunningham SM, 6 June 2014.)
[LTN 110, 11/6/14]