Miller v Deputy Commissioner of Taxation

The New South Wales Court of Appeal considered an appeal by Mr. Miller against a decision of the Deputy Commissioner of Taxation. The dispute concerned the Commissioner's assessment of additional income tax and penalties against Mr. Miller, arising from his failure to lodge income tax returns for several years. Mr. Miller contended that he was not liable for these assessments, arguing that he had no assessable income during the relevant periods.

The primary legal issue before the Court of Appeal was whether the Commissioner had discharged the onus of proof required to establish that Mr. Miller had assessable income for the years in question. Specifically, the Court had to determine if the evidence presented by the Commissioner was sufficient to support the assessments made, particularly in light of Mr. Miller's assertion of having no assessable income.

The Court of Appeal found that the Commissioner had failed to discharge the onus of proof. It was held that the Commissioner's assessments were based on assumptions and inferences that were not adequately supported by the evidence. The Court emphasised that while the Commissioner is entitled to make assessments based on available information, these assessments must be demonstrably justified, especially when challenged by the taxpayer. The Court concluded that the Commissioner had not provided sufficient evidence to establish that Mr. Miller had assessable income for the relevant income years, nor had the Commissioner demonstrated that the penalties imposed were warranted.

Consequently, the Court of Appeal allowed Mr. Miller's appeal, setting aside the Commissioner's assessments and the penalties imposed.