Cammarano and Commissioner of Taxation (Taxation)

This matter concerned an appeal by the applicants, Mr. Cammarano and another individual, against amended income tax assessments issued by the Commissioner of Taxation. The dispute arose from the Commissioner's determination that the applicants had unexplained and unreported income, primarily related to extensive gambling activities. The case was heard by K James SM in the Administrative Appeals Tribunal.

The primary legal issue before the Tribunal was whether the applicants had discharged the onus of proof, as stipulated by section 14ZZK of the *Taxation Administration Act 1953* (Cth), to demonstrate that the amended assessments were incorrect or excessive. This required the applicants to establish, on the balance of probabilities, the true source and amount of their income, particularly in relation to their gambling activities.

The Tribunal found that the applicants had failed to meet the required standard of proof. Crucially, the applicants declined to give evidence or be cross-examined. The evidence presented by their tax agent was found to be insufficient, as the agent relied solely on information provided by the applicants and lacked expertise in analysing casino documentation. The Tribunal concluded that the applicants' statements did not establish that their original declared income and gambling winnings were the sole source of their extensive gambling, nor did they establish what their actual income was. Consequently, the applicants failed to demonstrate that the Commissioner's amended assessments were excessive.

In accordance with section 43(1)(a) of the *Administrative Appeals Tribunal Act 1975* (Cth), the Tribunal affirmed the decision under review, meaning the Commissioner's amended assessments were upheld.