The AAT recently handed down a significant decision in two related proceedings BSKF and HYGT v Commissioner of Taxation [2024] AATA 3377, upholding the Commissioner of Taxation’s Pt IVA determination made under s 177EA of the Income Tax Assessment Act 1936.
The Tribunal also made findings favourable to the Commissioner in relation to various complex issues of law. In particular, the Tribunal found that:
- it had jurisdiction to determine whether assessments were excessive and whether a Pt IVA determination should have been made, notwithstanding the fact that the Commissioner had entered into a deed of settlement with the taxpayer. The Tribunal found that its task was to determine a taxpayer’s substantive liability by reference to the income tax law, and not an amount that the Commissioner had contractually agreed with the taxpayer;
- s 172(1)(a) of the Income Tax Assessment Act 1936 did not have the effect of retrospectively extinguishing liability for general interest charge for the purposes of the assessable recoupment provisions in s 20-20(3) of the Income Tax Assessment Act 1997 and therefore was not relevant to the consideration of whether there was a recoupment of GIC for the purposes of s 20-20(3);
- s 43(1) of the Administrative Appeals Tribunal Act 1975 did not confer a power or discretion on the Tribunal to order the withdrawal of notices issued under s 8AAZN of the Taxation Administration Act 1953. Rather, the s 177EA determination was the relevant decision under the Tribunal’s review, and the power to revoke or withdraw
s 8AAZN notices was not relevant to that review; and - the Commissioner had the power to increase the amount of an administrative penalty by reason of s 33(3) of the Acts Interpretation Act 1901.
Greg O’Mahoney and Eugene Chan appeared for the Commissioner of Taxation in the proceedings.
