TZSX and Commissioner of Taxation (Taxation)

This matter concerned an application for review of a decision by the Commissioner of Taxation regarding a departure prohibition order. The applicant, TZSX, sought to challenge the Commissioner's assessment of whether the security provided was satisfactory to ensure their return to Australia. The dispute centred on the adequacy of the security offered in light of a significant tax liability.

The Administrative Appeals Tribunal (AAT) was required to determine whether the applicant had provided security to the satisfaction of the Commissioner (and by extension, the Tribunal) for their return to Australia, as stipulated by section 14U(1)(b)(i) of the Taxation Administration Act 1953 (Cth). The applicant did not contend that other provisions of section 14U of the Act applied.

The Tribunal considered previous AAT decisions concerning the adequacy of security for return to Australia, noting that while the level of tax liability is relevant, it is not determinative. The Tribunal distinguished the present case from *Re Amies*, where the applicant's strong ties to Australia and low risk of non-return led to the security being deemed sufficient despite a substantial tax debt. In contrast, the Tribunal observed that the prospect of facing proceedings for over $33 million was daunting, and the question was whether the security offered provided a sufficient incentive for the applicant to return, or if its forfeiture would be too high a price for non-return. The Tribunal ultimately affirmed the Commissioner's decision.