The AAT has allowed some of a taxpayer’s input tax credit (ITC) claims and remitted the matter to the Commissioner to issue an assessment in accordance with its reasons.
The taxpayer was in dispute with the Commissioner with respect to his entitlement to claim ITCs totalling $6,795 in the tax periods between 1 January 2009 to 31 March 2011 (the Relevant Period). He traded as a sole trader with 2 businesses, one in corporate communications consulting and the other in developing information technology systems in the gaming industry.
The Commissioner initially formed the view that the taxpayer was not carrying on an enterprise during the Relevant Period and, therefore, was not entitled to claim any ITCs. However, after the Tribunal proceedings had commenced, the Commissioner concluded that the taxpayer was carrying on an enterprise but that, based on the limited documents he had produced, he was only entitled to claim very few ITCs.
The Tribunal accepted the taxpayer was carrying on an enterprise.
The Tribunal said the taxpayer subsequently produced about 6 folders of documents, which included invoices, bank statements, spreadsheets, email correspondence, conference papers and submissions to substantiate his ITCs.
After reviewing the evidence, the Tribunal decided to allow some of the ITCs claimed, but denied others as it considered they were not [for other reasons] for “creditable acquisitions” made by the taxpayer.
(AAT Case [2014] AATA 818, Re Ryan and FCT, AAT, Lazanas SM, AAT Ref: 2012/0497, 31 October 2014.)
[LTN 212, 3/11/14]