GSLL and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered the liability of GSLL and ZZSW (the applicants) to an administrative penalty for failing to lodge Fringe Benefits Tax (FBT) returns. The Commissioner of Taxation (the respondent) had imposed a base penalty amount of 75% and had not remitted any part of it. The applicants sought review of these decisions.

The Tribunal was required to determine whether the applicants were liable to a penalty under section 284-75(3) of Schedule 1 to the Taxation Administration Act 1953 (Cth) for failing to lodge their FBT returns. It also needed to consider whether any safe harbour provisions applied to reduce or eliminate the penalty, and whether the Commissioner's discretion to remit the penalty should be exercised in the applicants' favour.

The Tribunal found that the applicants were liable for the penalty under section 284-75(3) as they had failed to lodge their FBT returns by the required date, the returns were necessary for the respondent to accurately determine their FBT liability, and the respondent had issued default assessments without the assistance of the returns. The Tribunal held that the safe harbour provisions relied upon by the applicants, specifically sections 284-75(6) and 286-75(1A) of Schedule 1 to the TAA 1953, did not apply to a penalty imposed under section 284-75(3). Furthermore, the Tribunal considered the applicants' circumstances, including the relationship between Mr Ooi and Mr Goh, and concluded that it was not satisfied that the penalty should be remitted in whole or in part.