Burns and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal reviewed a decision of the Deputy Commissioner of Taxation disallowing the applicant's objection to a prior decision not to grant him a release from an eligible taxation debt. The applicant, a self-employed flooring installer, sought this release on the grounds of serious hardship. The taxation liabilities in question arose from unpaid income tax, PAYGI, and GST, along with associated penalties and general interest charges for the 2014, 2015, and 2017 financial years.

The Tribunal was required to determine whether the applicant would suffer serious hardship if required to satisfy his taxation liabilities, and consequently, whether to exercise its discretion to grant a release. This involved considering the meaning of "serious hardship" within the context of the *Taxation Administration Act 1953* (Cth), specifically section 340-5 of Schedule 1. The assessment of hardship typically involves an income/outgoing test, considering what constitutes a "reasonable timeframe" for meeting obligations, and an assets/liabilities test, alongside other relevant factors.

The Tribunal found that the applicant had not demonstrated serious financial hardship. While acknowledging the applicant's personal circumstances, including a significant back injury that led to periods of incapacitation and reduced income, a subsequent reliance on alcohol, a drink-driving conviction, and the deaths of his cousin and grandmother, these factors were not found to establish the threshold for serious hardship. The Tribunal also noted the applicant's poor compliance history, which was exacerbated by his personal issues. Ultimately, the Tribunal affirmed the Deputy Commissioner's decision.