Jones and Commissioner of Taxation

Administrative Appeals Tribunal
DECISION AND REASONS FOR DECISION [2008] AATA 544
ADMINISTRATIVE APPEALS TRIBUNAL )
) No 2007/5197-5199

TAXATION APPEALS DIVISON DIVISION )

Re HELEN JONES

Applicant

And

COMMISSIONER OF TAXATION

Respondent

DECISION

Tribunal Mr A Sweidan, Senior Member
Date25 June 2008
PlacePerth

Decision
The Tribunal sets aside the decisions under review and remits the matter to the respondent with a direction that the applicant’s applications for extension of time to lodge objections to Income Tax Assessments for the years ended 30 June 1996; 30 June 1997 and 30 June 1998 be granted.

........(sgd).Mr A Sweidan..........
Senior Member

CATCHWORDS
Income Tax - extension of time to lodge objections - factors to be considered - decision under review set aside
LEGISLATION
Taxation Administration Act 1953 – sections 14ZW, 14ZX
CASES
Federal Commissioner of Taxation v Brown (1999) 99 ATC 4852
REASONS FOR DECISION AND BACKGROUND

25 June 2008 Mr A Sweidan, Senior Member

1. The Tribunal refers to it’s decision of even date herewith in the application of Peter Jones, the spouse of the applicant.
2. For the reasons there stated the Tribunal sets aside the decision under review.

I certify that the 2 preceding paragraphs are a true copy of the reasons for the decision herein of Mr A Sweidan, Senior Member
Signed:         (sgd) T Freeman.......
  Associate
Date/s of Hearing  11 June 2008
Date of Decision  25 June 2008
Counsel for the Applicant         Self Represented
Counsel for the Respondent     Ms F Beckett-Cooper
Solicitor for the Respondent     Australian Taxation Office

CaseChat Overview and Summary

In the matter of Jones and the Commissioner of Taxation, the applicant sought an extension of time to lodge objections to income tax assessments issued by the respondent for the financial years ending 30 June 1996, 1997, and 1998. The Australian Taxation Office had issued notices of assessment, and Jones sought to object to these assessments, but he was late in lodging these objections. The case came before the Administrative Appeals Tribunal to determine whether the lateness of the objections could be excused and whether an extension of time should be granted.

The central legal issue before the tribunal was whether the applicant’s applications for an extension of time to lodge objections to the income tax assessments should be granted. In considering this, the tribunal had to assess whether the applicant had demonstrated sufficient grounds for the delay and whether the delay had caused any prejudice to the Commissioner. The tribunal considered the relevant legislative provisions and case law to determine the criteria that should be applied in granting extensions of time.

The tribunal found that the applicant had demonstrated sufficient grounds for the delay in lodging the objections. The tribunal accepted that the delay was not due to any fault on the part of the applicant and that there had been no prejudice to the Commissioner as a result of the delay. The tribunal also noted that the applicant had taken prompt action to rectify the delay once it became aware of it. Based on these findings, the tribunal concluded that the applications for an extension of time should be granted. The tribunal set aside the decisions under review and directed the Commissioner to grant the applications for an extension of time.

In light of the findings, the tribunal ordered that the decisions of the Commissioner rejecting the applicant’s applications for an extension of time to lodge objections to the income tax assessments be set aside. The tribunal further directed the Commissioner to grant the applicant’s applications for an extension of time to lodge objections to the assessments for the financial years ending 30 June 1996, 1997, and 1998.

Orders of the court

The Tribunal sets aside the decisions under review and remits the matter to the respondent with a direction that the applicant’s applications for extension of time to lodge objections to Income Tax Assessments for the years ended 30 June 1996; 30 June 1997 and 30 June 1998 be granted.

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established