Bazzo v Commissioner of Taxation [2017] FCA 71

FEDERAL COURT OF AUSTRALIA

Bazzo v Commissioner of Taxation [2017] FCA 71 File number: NSD 1828 of 2016

Judge: ROBERTSON J

Date of judgment: 10 February 2017

Catchwords: TAXATION – construction of Deed of Agreement – audit review by Commissioner of Taxation (Commissioner) of the taxpayer's taxation affairs – as a result, Commissioner issued Notices of Amended Assessment (Amended Assessments) and Notices of Amended Assessment of shortfall penalty (Penalty Notices) to the taxpayer in respect of the years of income ended 30 June 2009, 30 June 2010 and 30 June 2011 – the parties remained in dispute as to the alleged taxation liabilities as described in the Amended Assessments and Penalty Notices – in exchange for securities given in accordance with the Deed, the Commissioner agreed to forbear from undertaking recovery action in respect of the Taxation Debt upon the terms and conditions set out in the Deed – Taxation Debt defined by reference to a sum "comprised of Tax-Related Liability and applicable GIC due and payable by the Taxpayer as at 7 August 2015, subject to any adjustment to those amounts by virtue of the Determination of the Objection Process" – whether Commissioner entitled to claim from the taxpayer, before the Determination of the Objection Process, general interest charge accrued since 7 August 2015

Legislation: Income Tax Assessment Act 1997 (Cth) s 5-15 Taxation Administration Act 1953 (Cth) ss 8AAC, 8AAD, 8AAE, 8AAF, 8AAG, Sch 1 ss 255-1, 255-5, 260-5

Cases cited: Federal Commissioner of Taxation v Myer Emporium Ltd [1987] HCA 18; 163 CLR 199 Norman v Federal Commissioner of Taxation [1963] HCA 21; 109 CLR 9