Behrndt and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered a dispute between Mr Behrndt and the Commissioner of Taxation concerning amended income tax assessments for the financial years ending 30 June 2009, 2011, 2012, and 2013. Mr Behrndt objected to assessments totalling approximately $470,000, arguing that the correct amount of tax payable was closer to $245,000, though the precise calculation of this figure was unclear. The Commissioner had determined that Mr Behrndt's tax returns did not declare all assessable income, specifically identifying certain bank deposits as income derived from services rendered.

The primary legal issue before the Tribunal was whether Mr Behrndt had discharged the onus placed upon him to prove that the Commissioner's amended assessments were excessive. This involved determining whether certain deposits into Mr Behrndt's bank accounts, including those held by Creative Edge Investments Pty Ltd, constituted assessable income, and whether any exclusions claimed by Mr Behrndt were substantiated. The Tribunal also considered the appropriateness of shortfall penalties and interest charges.

Deputy President Britten-Jones P reasoned that the onus of proof rested with Mr Behrndt to demonstrate that the amended assessments were excessive, as required by s 167 of the *Income Tax Assessment Act 1936* (Cth) and s 14ZZK of the *Taxation Administration Act 1953* (Cth). While Mr Behrndt did not dispute receiving the deposits, he failed to provide satisfactory evidence to support his assertions that specific amounts were not assessable income, such as those from family members, sale proceeds, inter-account transfers, or amounts attributable to others. Consequently, Mr Behrndt could not prove that the Commissioner's inclusion of these deposits as assessable income was incorrect. The Tribunal found Mr Behrndt's conduct to be reckless, warranting the imposition of a 50% shortfall penalty.

The Tribunal affirmed the Commissioner's decision under review.