Power v Deputy Commissioner of Taxation

Power and the Deputy Commissioner of Taxation (ATO) were the parties before the New South Wales Court of Appeal. The dispute concerned the validity of director penalty notices issued by the ATO to Mr Power, a director of a company that had failed to remit Pay As You Go (PAYG) withholdings to the ATO by the due date. The notices were issued under section 269-25 of the *Taxation Administration Act 1953* (Cth).

The central legal issue before the Court of Appeal was whether the director penalty notices issued to Mr Power complied with the requirements of section 269-25(2)(b) of the *Taxation Administration Act 1953* (Cth). Specifically, the court had to determine if the notices adequately stated that Mr Power was liable for the penalty because of an obligation under Division 269 of the Act, given that the notices referred generally to section 269-25.

The Court of Appeal reasoned that the purpose of section 269-25(2)(b) is to inform the director of the specific reason for their liability, namely, their obligation under Division 269 to ensure the company remits the withheld amounts. The court found that the notices, by referring to section 269-25 of the Act, implicitly conveyed that the director's liability arose from the provisions of Division 269, which deals with director penalties for unpaid amounts. The court held that this was sufficient to satisfy the statutory requirement, as the director could readily ascertain the basis of their liability by referring to the cited section.

The appeal was dismissed with costs.