QQRK and Commissioner of Taxation (Taxation)

This matter concerned a dispute between two brothers, the applicants, and the Commissioner of Taxation regarding the applicants' taxable income for the years ended 30 June 2011 to 30 June 2016. The Commissioner contended that the applicants had not properly accounted for all their taxable income, with the objection decision focusing on particular transactions, although the applicants were generally put to proof. The proceedings were before Deputy President Bernard J McCabe of the Administrative Appeals Tribunal.

The primary legal issues before the Tribunal were whether summonses issued under s 40A of the Administrative Appeals Tribunal Act 1975 at the request of the Commissioner, directing the NSW Crime Commission (NSWCC) and the Police to produce documents, should be set aside. The applicants argued that the summonses were problematic, and the Commissioner sought the documents to test the applicants' evidence and potentially include information obtained from criminal investigations into the applicants.

The Tribunal considered the discretionary nature of issuing summonses under s 40A of the AAT Act. While the practice registrar issues summonses that appear regular on their face, a member can set them aside. The applicants had raised issues with earlier versions of the summonses, leading to their withdrawal and reissue. The Tribunal noted that the Commissioner sought the documents to test the applicants' financial affairs and put them to proof on transactions, suggesting the material could assist in this regard. The Tribunal's reasoning focused on the Commissioner's need to test the applicants' evidence and the potential relevance of information held by the NSWCC and Police from their criminal investigations into the applicants.