Doyle and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered the characterisation of net proceeds from the sale of land by a trust, and the imposition of administrative penalties and shortfall interest charges by the Commissioner of Taxation. The applicant, Doyle, sought to review the Commissioner's decisions.

The Tribunal was required to determine whether the net proceeds of the land sales were capital in nature, and whether the applicant had a reasonably arguable position justifying a reduction in penalties.

The Tribunal found that while the applicant had received legal advice regarding the structuring of his business affairs, he had not received, nor relied upon, advice that the net proceeds of each sale were capital. Consequently, the Tribunal was not satisfied that the applicant had a reasonably arguable position. However, the Tribunal noted that reliance on professional advice could justify a reduction in penalty, and that the penalty had already been reduced to 5%. The Tribunal was not satisfied that any further reduction was warranted.

The Tribunal affirmed the Commissioner's decisions under review.