PDXS and Commissioner of Taxation (Taxation)

This matter concerned an application to the Administrative Appeals Tribunal (the Tribunal) for review of the Commissioner of Taxation's (the Commissioner) objection decision. The Applicant had made statements regarding cash income to the Western Australia Police, which led to $79,545 cash being frozen. Following referral to the Australian Taxation Office (ATO), default assessments for income tax for the 2011 to 2014 income years, and shortfall penalties for the 2011 to 2013 income years, were issued. The Commissioner disallowed the Applicant's objections to these assessments and also decided not to remit any general interest charge (GIC).

The Tribunal was required to determine three issues: first, whether the default income tax assessments were excessive; second, whether the administrative penalty assessments were excessive; and third, whether the Tribunal should exercise its discretion to remit the penalties imposed on the Applicant. The Tribunal also clarified that it did not have jurisdiction to review the Commissioner's decision not to remit the general interest charge, as this was not considered part of the income tax assessments and therefore not subject to objection or review.

The Tribunal found that the Applicant had not met the burden of proof to demonstrate that the default assessments were excessive. The Applicant had knowingly made false statements about his income, and the Commissioner's assessments were based on the information available, including the Applicant's admissions. The Tribunal concluded that the Applicant had failed to discharge his onus to show that the assessments were excessive, and therefore affirmed the Commissioner's objection decision.