Johnson; Secretary, Department of Social Services and (Social services second review)

This matter concerned an appeal by Mr Johnson against a decision of the Secretary of the Department of Social Services regarding the late lodgement of his taxation return, which impacted his entitlement to Family Tax Benefit. The dispute centred on whether "special circumstances" existed that prevented Mr Johnson from lodging his income tax return by the required deadline. The decision was heard by Deputy President Bernard McCabe.

The primary legal issue before the Tribunal was to determine whether the circumstances surrounding the late lodgement of Mr Johnson's tax return constituted "special circumstances" that would permit the exercise of discretion to extend the time for lodgement under section 32C(1) of the relevant Act. This required an assessment of whether Mr Johnson was genuinely prevented from lodging his return by the deadline.

Deputy President McCabe reasoned that while Mr Johnson was aware of his obligation to file his tax returns and had received notices to that effect, the critical factor was whether he was *prevented* from filing. The Tribunal found that the failure of Mr Johnson's accountants to lodge the return, while admittedly unusual, did not prevent Mr Johnson himself from acting. The evidence indicated Mr Johnson was unaware of his accountants' internal issues at the time and was not actively prevented from making alternative arrangements or filing the return himself. The Tribunal concluded that the accountants' failure to act on his instructions, without Mr Johnson being aware or actively obstructed, did not amount to special circumstances that prevented him from filing.

Consequently, the Tribunal set aside the decision under review and substituted its own finding that the discretion to extend time could not be exercised in Mr Johnson's favour.