The Federal Court has refused a taxpayer’s request for an extension of time to file an application for judicial review under the Administrative Decisions (Judicial Review) Act 1997.
- Following an audit of the taxpayer’s tax affairs, the Commissioner in August/September 2011 issued default assessments for the 2006 to 2009 income years (and an amended assessment for the 2005 income year), along with penalties.
- In October 2011, the Commissioner commenced proceedings in the NSW Supreme Court to recover the tax debt; and
- In July 2012 (ie after Supreme Court proceedings had commenced, but before judgment by default was obtained – see below), the taxpayer’s tax agent lodged objections to each of the assessments.
- In December 2012, the Commissioner obtained judgment by default against the taxpayer for around id=”mce_marker”.88m (which were not responsive to the objections).
- In October 2013, the Commissioner allowed the objections in part and informed the accountant by letter (dated 10 October 2013).
- Amended assessments were then issued reducing the taxpayer’s tax debt (it appears reducing the debt to id=”mce_marker”.12m).
- In November 2013, the Commissioner issued a bankruptcy notice to the taxpayer for id=”mce_marker”.12m.
- In March 2014, the taxpayer commenced Federal Court proceedings to set aside the bankruptcy notice. That application had been adjourned to the Registrar’s list.
- The taxpayer said he did not become aware of the amended assessment until early March 2014 when he obtained them from his accountant.
- In May 2014, the taxpayer applied to the Federal Court for an extension of time to lodge an application for review under the ADJR Act.
The Court concluded the “so-called” decisions made by the Commissioner and conduct of the Commissioner sought to be reviewed by the taxpayer under the ADJR Act were not capable of review under the Act.
Accordingly, the taxpayer’s application for an extension of time was refused.
(Shears v DCT [2014] FCA 800, Federal Court, Foster J, 30 July 2014.)
[LTN 146, 31/7/14]