Moriarty and Commissioner of Taxation (Taxation)

This matter concerned an application by Mr Moriarty for review of the Commissioner of Taxation's decision to refuse his application for release from taxation liabilities totalling $391,229.76. Mr Moriarty had previously been released from taxation liabilities in 2006. He lodged income tax returns for the years ended 30 June 2007 to 2010 in January 2012, and his application for release from the resulting liabilities was refused in October 2012. He subsequently lodged returns for the years ended 30 June 2012 to 2014 in February 2015, and a second application for release from these further liabilities, along with the earlier ones, was refused in May 2015. The Commissioner disallowed Mr Moriarty's objection to this decision in August 2015.

The Tribunal was required to determine two issues: first, whether Mr Moriarty would suffer serious hardship if he were not released from his tax liability, and second, if serious hardship were established, how the Commissioner's discretion to grant a release should be exercised. The Tribunal noted that "serious hardship" should be interpreted according to its ordinary meaning and could be satisfied by circumstances less than destitution, requiring consideration of the applicant's individual circumstances by reference to normal community standards, including their financial affairs, income, expenses, assets, and liabilities, as well as those of their household.

The Tribunal found that, in all the circumstances, the discretion to grant a release should not be exercised in Mr Moriarty's favour. The decision under review was affirmed.