Le v Commissioner of Taxation [2021] FCA 303

Federal Court of Australia

Le v Commissioner of Taxation [2021] FCA 303 Appeal from: NGFZ v Federal Commissioner of Taxation [2019] AATA 5410

File number: QUD 728 of 2019

Judgment of: LOGAN J

Date of judgment: 30 March 2021

Catchwords: TAXATION – onus of proof – appeal under s 14ZZ of the Taxation Administration Act 1953 (Cth) – where Commissioner adopted asset betterment approach – where applicants submitted assessments were excessive – whether on appeal applicants had discharged onus of proof pursuant to s 14ZZK TAA – where applicants contended that taxable income as declared was accurate – where applicants made submissions capable of explaining unexplained wealth – whether Tribunal did not refer to those submissions in reasons – where adverse findings of credit made against applicants – appeal allowed TAXATION – procedural fairness – whether findings of adverse credibility amounted to error – where adverse findings of credit based on inconsistency of applicants' oral evidence – where adverse findings a matter for determination by the Tribunal – whether it was evident in Tribunal's decision that there was an inherent and illogical inconsistency – where inconsistency amounted to unreasonableness TAXATION – cross-appeal by Commissioner – where applicants successful in appeal – cross-appeal dismissed

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) ss 25, 33, 42C, 43, 44 Federal Proceedings (Costs) Act 1981 (Cth) s 8 Income Tax Assessment Act 1922 (Cth) s 39 Income Tax Assessment Act 1936 (Cth) ss 177, 190 Taxation Administration Act 1953 (Cth) ss 14ZZ, 14ZZJ, 14ZZK, 14ZZO, 350