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 4 May 2014, the taxpayer’s outstanding tax debts amounted to around $58,000.
- However, 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 that no explanation was offered for the failure by the taxpayer to meet his tax liabilities as they arose.
It said that instead of paying what it considered to be manageable assessments, the taxpayer “largely ignored his tax liabilities over the last 5 or 6 years, and has allowed the amounts due to accumulate with interest”.
(AAT Case [2014] AATA 343, Re Power and FCT, AAT, Ref No: 2013/4539, Molloy DP, 2 June 2014.)
[LTN 105, 3/6/14]