Naboulsi v Commissioner of Taxation

Mr Naboulsi appeals against two objection decisions of the Commissioner of Taxation, which disallowed his objections to amended assessments made for the years ending 30 June 1996 and 30 June 1997. The assessments resulted from an investigation into Mr Naboulsi's tax affairs conducted by the Australian Taxation Office. Mr Naboulsi, who owns and operates taxis, had engaged tax agents to prepare his income tax returns. The Commissioner issued assessments based on the tax returns, but later amended them following an investigation. The primary legal issue in this case was whether Mr Naboulsi's objections to the amended assessments should be allowed. The court had to determine whether Mr Naboulsi had discharged his burden of proving that the cash book, which formed the basis of the amended assessments, accurately reflected his taxi business's takings and expenses. The court also had to assess the credibility of Mr Naboulsi's evidence and the reliability of the cash book as a record of his business transactions.

The court found that the evidence of Ms Hird and Mr Hackett, who conducted the investigation, was credible and that their accounts of the interviews with Mr Naboulsi and his tax agents were reliable. The court rejected Mr Naboulsi's argument that his tax agents had completed the cash book and that their performance in completing the questionnaire was no better than their efforts in completing the tax returns. The court held that Mr Naboulsi had not discharged his burden of proving that the cash book was a genuine record of his taxi business's takings and expenses. The court found that the Commissioner's amended assessments were based on a sound evidentiary foundation and that the objections should be disallowed. The court ordered that the applications be dismissed and that Mr Naboulsi pay the respondent's costs of the applications.