Patricia Cassaniti v Commissioner of Taxation [2010] FCA 642

FEDERAL COURT OF AUSTRALIA

Patricia Cassaniti v Commissioner of Taxation [2010] FCA 642 Citation: Patricia Cassaniti v Commissioner of Taxation [2010] FCA 642

Parties: PATRICIA GIULIANA CASSANITI v COMMISSIONER OF TAXATION OF THE COMMONWEALTH OF AUSTRALIA

File number: NSD 1009 of 2008

Judge: EDMONDS J

Date of judgment: 24 June 2010

Catchwords: INCOME TAX – withholding payments being salary or wages – what constitutes the withholding of an amount from salary or wages paid to an individual as an employee under the Pay As You Go (PAYG) withholding system in Pt 2-5 of Sch 1 to the Taxation Administration Act 1953 (Cth) (TAA) – whether, by virtue of s 18-15(1), the applicant is entitled to a credit for amounts said to be withheld from salary or wages said to be paid to her – whether salary or wages paid to the applicant by reason of drawings she made on her employer's bank account and payments made out of that account on her behalf which were subsequently debited to her loan account and reconciled at year end with her wages account. HELD: No salary or wages were paid to the applicant from which amounts of PAYG withholding could be withheld. HELD: No amounts of PAYG withholding were withheld so as to entitle the applicant to a credit by virtue of s 18-15(1) of Sch 1 to the TAA.

Legislation: Taxation Administration Act 1953 (Cth) Pt 2-5, Sch 1, s 18-15(1) Income Tax Assessment Act 1936 (Cth) ss 177(1), 221H(2) Income Tax Assessment Act 1997 (Cth) s 995-1 Judiciary Act 1903 (Cth) ss 39B(1), 39B(1A)

Cases cited: Deputy Commissioner of Taxation (Vic) v Sargon (1985) 16 ATR 355 applied Federal Commissioner of Taxation v Steeves Agnew and Co (Vic) Pty Limited (1951) 82 CLR 408 applied Temples Wholesale Flower Supplies Pty Ltd v Federal Commissioner of Taxation (1991) 29 FCR 93 applied