Chang v Commissioner of Taxation

[2013] AATA 661

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Chang
v Commissioner of Taxation

Tribunal:

Member: Deputy President S E Frost

Subject References:
amended assessments for four income years
Commissioner's opinion that there was evasion in three of those years
administrative penalty imposed at 50 per cent for recklessness
taxpayer's burden of proof
Tribunal satisfied no evasion in the three income years
objection decisions set aside and objections allowed in full
taxpayer establishes excessiveness of fourth amended assessment
objection allowed in part
administrative penalty remitted in full

Legislative References:
Taxation Administration Act 1953 - s 14ZZK; s 284-75; s 284-90; s 298-20
Income Tax Assessment Act 1936 - s 170

Case References:
Gauci v Federal Commissioner of Taxation - [1975] HCA 54; 135 CLR 81
Federal Commissioner of Taxation v Dalco - [1990] HCA 3; 168 CLR 614
Danmark Pty Ltd v Federal Commissioner of Taxation; Forestwood Pty Ltd v Federal Commissioner of Taxation - (1944) 7 ATD 333
Nguyen and Commissioner of Taxation - [2011] AATA 544
Commissioner of Taxation v SNF (Australia) Pty Ltd - [2011] FCAFC 74
Davis v Federal Commissioner of Taxation - [2000] FCA 44
Imperial Bottleshops Pty Ltd v Federal Commissioner of Taxation - 91 ATC 4546
McCormack v Commissioner of Taxation - (1979) 143 CLR 284
Miro v Fu Pty Limited - [2003] NSWSC 1009

Hearing date: 24-28 September and 2-3 October 2012
Decision date: 29 August 2013

Sydney

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Order/Decision - can go after the judgment

The Tribunal decides:

(a)

in matter no. 2010/4195 (relating to the 2003 year) - to set aside the objection decision and to substitute a decision that the objection is allowed in full;

(b)

in matter no. 2011/0902 (relating to the 2004 year) - to set aside the objection decision and to substitute a decision that the objection is allowed in full;

(c)

in matter no. 2010/4197 (relating to the 2005 year) - to set aside the objection decision and to substitute a decision that the objection is allowed in full;

(d)

in matter no. 2010/4198 (relating to the 2006 year) - to vary the objection decision so as to allow the objection in part, as detailed in these reasons;

(e)

to remit administrative penalty in full.