A taxpayer been unsuccessful before the Federal Circuit Court in seeking review of the Commissioner’s decisions to refuse a tax debt compromise and remission of GIC and penalties.
The taxpayer’s father operated a jewelry business. However, following various misfortunes including ill health of the father and the global financial crisis, the taxpayer became aware of the mismanagement of the financial affairs of the business. In 2010, the Commissioner commenced debt recovery action against the taxpayer. The taxpayer lodged an application for remission of GIC and penalties and an application of tax debt compromise with the Commissioner. The Commissioner rejected both applications. The taxpayer then sought judicial review.
The Court noted the taxpayer’s applications were lodged out of time – the compromise issue was out of time by 9 days and the GIC issue was out of time by one day.
The Court held the application in relation to the compromise issue was without merit. It agreed with the Commissioner that the compromise decision was not amenable to review under the Administrative Decisions (Judicial Review) Act 1977.
It allowed an extension of time in relation to the GIC issue, but found there was no basis for remission under s 8AAG of the TAA.
(Tettis v DCT [2013] FCCA 985, Federal Circuit Court, Simpson J, 31 July 2013.)
[LTN 150, 6/8/13]