Jonshagen and Commissioner of Taxation (Taxation)

This matter concerned an application for review of the Commissioner of Taxation's decision to refuse the Applicant's request for an extension of time to lodge an objection against an amended notice of assessment for the income year ended 30 June 2000. The Applicant had participated in a winery project and claimed deductions related to this participation. The Commissioner had formed the view that these deductions were not allowable, primarily on the basis that Part IVA of the *Income Tax Assessment Act 1936* (Cth) applied to the project.

The legal issues before the Tribunal were whether the Applicant had provided a sufficient explanation for the delay in lodging an objection, the circumstances surrounding that delay, and whether the Applicant had an arguable case. Crucially, the Tribunal was required to consider the effect of previous decisions, including a Federal Court judgment, which had addressed the Applicant's attempts to challenge the amended assessments.

The Tribunal applied the principles established in *Brown v Federal Commissioner of Taxation* (1999) 99 ATC 4516, which require consideration of the taxpayer's explanation for delay, the circumstances of the delay, the arguable merit of the objection, and any prejudice to the Commissioner. However, the Tribunal found itself bound by the Federal Court's decision, which had determined that the Applicant had entered into a legally binding settlement deed. This deed included an agreement by the Applicant to forgo his right to file objections in respect of the amended assessments. The Federal Court had concluded that, by entering into this deed, the Applicant had effectively waived his statutory right to object, irrespective of whether he had an arguable case against the disallowance of deductions.

Consequently, the Tribunal affirmed the Commissioner's decision to refuse the extension of time. The Applicant was precluded from lodging an objection due to the waiver of his rights under the project settlement deed, rendering the application for an extension of time futile.