Vu v Commissioner of Taxation [2006] FCA 889

FEDERAL COURT OF AUSTRALIA

Vu v Commissioner of Taxation [2006] FCA 889 TAXATION – appeal from objection decision – Commissioner issued default assessments for income years of taxpayer and his wife – assessments based on bank deposits held separately and in joint names – income attributed 50 per cent to each taxpayer – notices of objection filed – assessments challenged on basis that funds were brought to Australia from Vietnam – objections disallowed on basis that funds were linked to joint businesses – Administrative Appeals Tribunal review of objection decision sought by one applicant only – Tribunal did not accept that most of the bank deposits came from Vietnam ADMINISTRATIVE LAW – whether Administrative Appeals Tribunal erred in failing to give reasons for treating money as joint funds – whether Tribunal erred in failing to take into account the identity of the bank account – limitations on the Tribunal when reviewing an decision under the Taxation Administration Act 1953 (Cth) – whether grounds of objection wide enough to include issues on appeal to Federal Court – onus of proof

Held: The Tribunal correctly addressed the matters raised before it within the limitations of the grounds of objection – the grounds of objection did not put the issue of common sources of income directly to the Tribunal – onus of proof not discharged – no error in the Tribunal's reasons given the case put before it

Income Tax Assessment Act 1936 (Cth) s 6(1), s 167 Income Tax Assessment Act 1997 s 6-5(2) Taxation Administration Act 1953 (Cth)s 14ZZ, s 14ZZK(b)(i) Administrative Appeals Tribunal Act 1975 (Cth) s 44

Hill v Repatriation Commission (2005) 218 ALR 251 cited Federal Commissioner of Taxation v Munro (1997) 37 ATR 249 cited McCormack v Federal Commissioner of Taxation (1979) 143 CLR 284 followed Gauci v Federal Commissioner of Taxation (1975) 135 CLR 81 cited Galea v Federal Commissioner of Taxation (1990) 90 ATC 5,060 discussed Casarotto v Australian Postal Commission (1989) 86 ALR 399 cited Holloway v McFeeters (1956) 94 CLR 470 applied