The Federal Court has dismissed a taxpayer’s application under s 39B(1A) of the Judiciary Act 1903 that he was entitled to a credit of $160,0000 for tax withheld from payments of salary and wages paid to him in the 2004 income year by a company of which he was a director, employee and 50% shareholder. The taxpayer had originally unsuccessfully objected to the disallowance of his claim for the credits (albeit the Commissioner was prepared to allow the credits if appropriate evidence could be produced).
Apart from finding that the taxpayer’s evidence (in the form of affidavits, spread sheet records and various banking records etc) were insufficient to support his claim, the Court also found there was a lack of any evidence of the terms of his contract of employment or, indeed, of the existence of any such contract of employment. At the same time, it found there were no books of account or other records of the company, such as wages records, for the relevant year of income or, for that matter, any other year of income.
(Young v FCT [2012] FCA 1098, Federal Court, Edmonds J, 10 October 2012.)
[LTN 197, 11/10]