RHXV and Commissioner of Taxation (Taxation)

The Administrative Appeals Tribunal considered an objection by the Applicant against the Commissioner of Taxation's refusal to remit a shortfall penalty. The dispute concerned the Applicant's failure to exercise reasonable care in maintaining records for deductions claimed in his 2017 income tax return, which led to the imposition of a penalty.

The Tribunal was required to determine whether the Applicant had discharged the burden of proof under section 14ZZK of the *Taxation Administration Act 1953* (Cth) to demonstrate that the penalty was not properly imposed. Specifically, the Tribunal needed to assess whether the Applicant had exercised reasonable care in substantiating his claimed deductions, or if the circumstances warranted remission of the penalty on compassionate grounds.

The Tribunal found that the Applicant's case was unclear and that he had not adequately demonstrated that he exercised reasonable care. While the Applicant alluded to a computer crash preventing access to records, this was not a convincing explanation, particularly for deductions that were not claimable in principle. The Applicant failed to direct the Tribunal to specific documents that would have substantiated his claims, and it was not the Tribunal's role to sift through extensive documentation to find supporting evidence. Consequently, the Tribunal affirmed the Commissioner's decision to disallow the objection and not remit the penalty.