Bosanac v Commissioner of Taxation & Anor

In *Bosanac v Commissioner of Taxation & Anor*, Gleeson J of the Federal Court of Australia considered a dispute concerning the Commissioner of Taxation's assessment of additional tax and penalties against the applicant, Ms. Bosanac, for alleged contraventions of the *Superannuation Industry (Supervision) Act 1993* (Cth) (SIS Act). The Commissioner sought to recover these amounts from Ms. Bosanac personally, alleging she was knowingly concerned in the contraventions.

The primary legal issue before the Court was whether Ms. Bosanac was knowingly concerned in contraventions of the SIS Act by a superannuation fund, and consequently, whether she was personally liable for the additional tax and penalties imposed by the Commissioner. This involved determining the meaning of "knowingly concerned" in the context of the relevant provisions of the SIS Act and the *Taxation Administration Act 1953* (Cth).

Gleeson J analysed the evidence and relevant case law, including the High Court's decision in *Federal Commissioner of Taxation v Myer Emporium (Australia) Ltd*. His Honour found that Ms. Bosanac had not been knowingly concerned in the contraventions. The Court applied the principles that mere passive acquiescence or a failure to inquire is insufficient to establish that a person was "knowingly concerned." Instead, it requires a degree of knowledge or suspicion that the conduct in question was likely to constitute a contravention, coupled with a voluntary decision to proceed with that conduct.

The Court ordered that the Commissioner's application for judgment against Ms. Bosanac be dismissed.