Tax Appeals:

There are times when the ATO issues you an assessment or other taxation decision and you wish to challenge it. There may be a multitude of reasons why you believe the ATO has made a mistake, based their decision on false or irrelevant information, or that you should be afforded leniency from certain penalties and fines. Professioanl and sound legal advice from a Taxation Lawyer makes solid commercial sense to ensure that when you do wish to commence a tax appeal you are prepared with all the relevant knowledge and legal authorities to support your case.

The process of lodging a tax appeal involves a number of stages and procedures. Firstly, an assessment (or other taxation decision), such as a ‘Notice of Assessment’ or ‘Notice of a Decision’ is served by the Commissioner on the taxpayer. For entities subject to full self-assessment, the return itself is deemed to be the assessment. Secondly, an Objection against assessment (or decision) is to be lodged with the Commissioner within two years of service of the notice of assessment or decision for most individuals and very small business taxpayers, or within four years of service of the notice of assessment or decision for taxpayers with more complex affairs. The taxpayer may apply for an extension of time. An objection against an amended assessment is limited to the particular items amended. Afterwards, the Commissioner of Taxation will send you an Objection decision which gives notice of the Commissioner’s decision allowing (in whole or in part) or disallowing the objection to be served on the taxpayer; if a decision is not made within 60 days, the taxpayer may require the Commissioner to make a decision within a further 60-day period.

Following this, you may make an application either to the Administrative Appeals Tribunal (AAT) or Small Taxation Claims Tribunal (STCT) for review of the objection decision. Alternatively, you may Appeal to the Federal Court against the objection decision. There are no provisions for an extension of time to lodge an appeal. The Federal Court may refer more straightforward matters to the Federal Circuit Court (formerly, the Federal Magistrate’s Court).  As to whether you should apply to the AAT (including the STCT) or appeal to the Federal Court, it is important to consider the size of the tax debt, the type of case, the nature of proceedings, publicity and costs. Professional and holistic legal advice from a Taxation Lawyer coupled with sound financial advice may be hugely beneficial to ensure that the proper forum is selected and your chances of success are optimised.

At the appeal, you have the burden of proof in proving your case. You are required to set out the grounds of your objection which will be limited to the grounds stated in the objection unless the AAT or court allows otherwise. During this time the Commissioner may grant a deferment of time for payment or may permit the tax to be paid by instalments. Liability to pay assessed tax is not suspended pending the Commissioner’s consideration of the taxpayer’s objection against an assessment, nor while a review or appeal is pending. The tax appeal process is complex and procedural and having an experienced Taxation Lawyer who may have regard to your factual circumstances can assist you in constructing a solid, legally supported case and may greatly assist you in succeeding in your tax appeal.

If you need further legal advice on your tax appeal matter, you may book an appointment with us by telephone on (02) 9233 4048 or by email to info@navado.com.au.  

This webpage (and any material or wording appearing on this webpage) is provided for general information purposes only and does not constitute any Legal Advice. It does not take into account your objectives, your instructions or all of the relevant facts and/or circumstances. Navado accepts no responsibility to any person who relies on the information provided on this website. We further refer you to our Disclaimer.