Le and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Ms Le against default assessments made by the Commissioner of Taxation for the tax years 2009 to 2014 and 2017. The Commissioner had utilised an asset betterment analysis, identifying unexplained wealth through increased net assets, expenditure, and overseas cash transfers, to determine Ms Le's assessable income and resulting tax liabilities. Ms Le contended that her taxable income was nil in each relevant year, attributing her lack of earnings to caring responsibilities, her own chronic back pain, and sole reliance on Family Tax Benefit payments and support from her ex-husband. The dispute also involved the imposition of administrative penalties.

The primary legal issue before the court was whether Ms Le had discharged the onus of proof by demonstrating that her actual taxable income was less than the amount assessed by the Commissioner. A secondary issue concerned the appropriateness of remitting the administrative penalties imposed by the Commissioner.

The court found that Ms Le had failed to prove her taxable income was nil or otherwise less than the Commissioner's assessment. While Ms Le provided a statement detailing her reliance on Centrelink payments and her ex-husband's income, and referred to documents supporting these claims, the court noted the existence of other evidence, including gambling winnings and a payment from the Commissioner of Police, which were not adequately explained or reconciled with her assertion of nil income. The court concluded that Ms Le had not discharged her onus of proof regarding her assessable income. Furthermore, the court determined that there was no basis to remit the administrative penalties, finding them to have been correctly imposed.

Consequently, the court affirmed the Commissioner's objection decision, upholding the default assessments of Ms Le's tax liabilities and the imposition of administrative penalties.