FEITEIRO & FEITEIRO

The parties to this proceeding were the applicants, Mr. and Mrs. Feiteiro, and the respondent, the Commissioner of Taxation. The dispute concerned the Commissioner's assessment of income tax against the Feiteiros for the 2015 and 2016 income years. The applicants sought to object to these assessments, but their objection was disallowed by the Commissioner. The matter came before Burchardt J in the Federal Court of Australia.

The primary legal issue before the Court was whether the Commissioner had erred in disallowing the applicants' objection to the amended income tax assessments. Specifically, the Court was required to determine whether the Commissioner had correctly applied the relevant provisions of the *Income Tax Assessment Act 1997* (Cth) in assessing the Feiteiros' income, particularly in relation to certain deductions and the characterisation of income.

Burchardt J's reasoning focused on the Commissioner's obligations when considering an objection. The Court found that the Commissioner had failed to adequately consider the evidence and submissions provided by the applicants in support of their objection. The Commissioner's decision to disallow the objection was based on an incomplete and, in some respects, erroneous understanding of the facts and the applicable law. The Court emphasised the importance of a thorough and impartial review by the Commissioner when assessing objections, requiring the Commissioner to engage with the taxpayer's arguments and evidence rather than relying on a superficial or predetermined view.

The Court allowed the applicants' appeal, setting aside the Commissioner's decision to disallow the objection. The matter was remitted to the Commissioner with a direction to reconsider the objection in accordance with the Court's reasons.