Milutinovic v Commissioner for Act Revenue

The applicants, Sue and Steve Milutinovic, sought a review of the Commissioner for ACT Revenue's (the respondent) decisions to disallow their objections to the 50% rate of penalty tax and the interest component in two land tax assessments made in relation to a property in Narrabundah. The assessments were for periods before and after the registration of a unit title for Unit 1 of the property. The applicants argued that they had notified the respondent about the rental status of the property and/or Unit 1, but the respondent found no record of any such notification. The Tribunal had to determine whether the applicants failed to comply with their obligation under section 14 of the Land Tax Act 2004 to give notice when the property was leased, and if so, whether they had a reasonable excuse for their failure, which would result in a lower rate of penalty tax under the Taxation Administration Act 1999. The Tribunal also had to consider the applicants' objections to the interest imposed on the land tax assessments. The Tribunal found that the applicants failed to give the required notice to the respondent and did not have a reasonable excuse for their failure. The applicants' evidence about their reliance on others and their family commitments did not persuade the Tribunal that they took reasonable care to meet their obligations. The Tribunal confirmed the respondent's decision to impose the 50% rate of penalty tax, but found that the respondent had not determined the applicants' objections to the interest, which was a reviewable decision. The Tribunal ordered the respondent to determine those objections in accordance with the Land Tax Act.