Southern Global Group Pty Ltd and Commissioner of Taxation (Taxation)

This matter concerned an appeal by Southern Global Group Pty Ltd (the Applicant) against the Commissioner of Taxation's (the Respondent) objection decision regarding amended assessments of net Goods and Services Tax (GST) amounts for the tax periods from 1 July 2016 to 31 December 2018. The Respondent had conducted a covert audit using a bank account methodology, concluding that unexplained deposits into the Applicant's bank accounts represented unreported consideration for taxable supplies. The Applicant had registered for GST on an accruals basis and described its main business activity as 'management consulting service'.

The primary legal issues before the Tribunal were whether the bank deposits identified by the Respondent constituted taxable supplies, and consequently, whether the Applicant had discharged its onus to prove that the amended assessments were excessive or otherwise incorrect, and to establish what the correct assessments should have been. The Applicant was required to provide supporting documentation for any claims that deposits were not taxable supplies, as general comments alone were insufficient.

The Tribunal found that the Applicant had failed to meet its burden of proof. It accepted the Respondent's submissions regarding the amended assessments and the concessions made. The Tribunal affirmed and varied the reviewable objection decision, with specific adjustments made to the amended assessments for certain tax periods, including reductions in taxable supplies for the December 2016, March 2018, and December 2018 quarters. The final outcome was that the amended assessments issued on 3 April 2019 were to be varied to reflect the amounts identified in a table provided within the decision.