The WA State Administrative Tribunal has affirmed the decision of the WA Commissioner of State Revenue not to wholly remit the amount of penalty tax imposed.

The taxpayer carried on business as an employment agency in the mining industry. During the relevant period, the Commissioner imposed penalties totalling some $342,000 for late lodgment of payroll tax returns and late payments. The Commissioner had provided partial remission, and a later further partial remission, settling with around $251,000.

The taxpayer sought full remission.

The Tribunal concluded that there were sound policy reasons to follow the published practice and that the Commissioner had applied the practice appropriately when he decided to further remit the penalty tax. Therefore, it affirmed the Commissioner’s decision and dismissed the taxpayer’s application.

(Wyn Recruitment Pty Ltd and Comr of State Revenue [2013] WASAT 136, WA State Administrative Tribunal, Sharp DP, 27 August 2013.)

[LTN 173, 6/9/13]