Moss v Deputy Commissioner of Taxation

The parties in this matter were Moss, the appellant, and the Deputy Commissioner of Taxation, the respondent. The dispute concerned Moss's liability for penalties imposed under s 221F(12) of the *Income Tax Assessment Act 1936* (Cth) for failing to remit amounts deducted from the wages of employees of a company by the due date. The appeal was heard by Sheller and Hodgson JJA and Davies AJA.

The central legal issue before the court was whether Moss, as a director of the company, was personally liable for the company's failure to remit the withheld tax amounts. Specifically, the court had to determine if Moss had taken all reasonable steps to ensure the company complied with its obligations, or if he had entered into a valid agreement with the Commissioner as contemplated by the legislation, which would have provided an alternative to his personal liability.

The court's reasoning focused on the interpretation of s 221F of the *Income Tax Assessment Act 1936*. It was held that the obligation to remit the deductions was a strict one, and directors could be held personally liable unless they could demonstrate they had taken all reasonable steps to prevent the default or had secured an agreement with the Commissioner. The court found that Moss had not discharged this onus, nor had he established the existence of a valid agreement that would absolve him of responsibility. The appeal was therefore dismissed.