Trustee of the Balmain Trust v Commissioner of Taxation [1998] FCA 423

FEDERAL COURT OF AUSTRALIA

INCOME TAXATION - Failure to lodge taxation return disclosing relevant trust income - decision of Commissioner that assessments should issue for rental income and for additional tax for non-disclosure of income - objections to assessments rejected - decision to reject objections affirmed by Administrative Appeals Tribunal - where Tribunal reached decision on basis that taxpayer had not satisfied onus of proof and demonstrated assessments excessive - where Tribunal placed heavy emphasis on onus of proof and unreliability of witnesses for taxpayer - whether decision of Tribunal invalid because of error of law - whether decision of Tribunal invalid because a decision to which no reasonable decision-maker could have come - whether Tribunal required to be positively satisfied of the liability of the taxpayer before affirming assessments - whether failure by Tribunal to provide procedural fairness. Administrative Appeals Tribunal Act 1975 (Cth) s 44 Income Tax Assessment Act 1936 (Cth) s 99A Taxation Administration Act 1953 (Cth) s 14ZZK Associated Provincial Picture Houses Ltd v Wednesbury Corporation [1948] 1 KB 223, dist Browne v Dunn (1893) 6 R 67, dist Deputy Commissioner of Taxation v Richard Walter Pty Ltd (1995) 183 CLR 168, appl Federal Commissioner of Taxation v Marbray Nominees Pty Ltd (1985) 85 ATC 4750, dist Krew v Federal Commissioner of Taxation (1971) 71 ATC 4213, dist Waterford v Commonwealth (1987) 163 CLR 54, refd TRUSTEE OF THE BALMAIN TRUST v COMMISSIONER OF TAXATION NG 335 of 1997 DAVIES J 29 APRIL 1998 SYDNEY

IN THE FEDERAL COURT OF AUSTRALIA

NEW SOUTH WALES DISTRICT REGISTRY NG 335 of 1997

on appeal FROM THE

ADMINISTRATIVE APPEALS TRIBUNAL

BETWEEN: THE TRUSTEE OF THE BALMAIN TRUST

Applicant

AND: COMMISSIONER OF TAXATION