Morgan and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Mr Morgan against decisions of the Commissioner of Taxation regarding Goods and Services Tax (GST) payable and entitlement to input tax credits for quarterly tax periods between 1 July 2007 and 30 June 2010. The dispute also involved an administrative penalty imposed by the Commissioner. The decision was made by Senior Member Egon Fice of the Administrative Appeals Tribunal.

The primary legal issues before the Tribunal were whether Mr Morgan had discharged the onus of proving that the Commissioner's assessments of GST payable were excessive, and whether he had discharged the onus of proving what the correct GST assessments should have been. Additionally, the Tribunal was required to determine whether Mr Morgan had discharged the onus of proving that the Commissioner's assessments regarding his entitlement to input tax credits were incorrect. Finally, the Tribunal considered whether Mr Morgan had made false and misleading statements in his Business Activity Statements (BAS) due to a failure to take reasonable care, and whether the administrative penalty imposed was appropriate.

Senior Member Fice found that Mr Morgan had failed to discharge the onus of proof on all the substantive issues. Specifically, Mr Morgan did not prove that the Commissioner's GST assessments were excessive or that different assessments should have been made. Similarly, he failed to prove that the Commissioner's assessments of his entitlement to input tax credits were incorrect. The Tribunal also found that Mr Morgan made false and misleading statements in his BAS reports by failing to take reasonable care, and that the imposition of an administrative penalty at 25% of the shortfall amount was the correct decision.

The Tribunal affirmed the Commissioner's objection decision of 5 June 2015 and the Commissioner's decision of 7 September 2011 to impose the administrative penalty.