T.D.S. Biz Pty Ltd v Commissioner of Taxation [2023] FCA 710

Federal Court of Australia

T.D.S. Biz Pty Ltd v Commissioner of Taxation [2023] FCA 710 File number: NSD 1002 of 2022

Judgment of: BROMWICH J

Date of judgment: 29 June 2023

Catchwords: TAXATION – appeal from a decision the Administrative Appeals Tribunal affirming a decision by the Commissioner of Taxation to disallow an objection to a notice of amended assessment by which a claim for research and development (R&D) tax offsets was not allowed – where the Tribunal also affirmed a decision by the Commissioner to disallow an objection to a notice of assessment of shortfall penalty imposing a 50% administrative penalty – whether the Tribunal erred in the construction and application of ss 355-205 and 355-210 of the Income Tax Assessment Act 1997 (Cth) – whether the Tribunal erred by denying the applicant procedural fairness and not affording the applicant a reasonable opportunity to present its case – Held: appeal dismissed with costs

Legislation: Administrative Appeals Tribunal Act 1975 (Cth) s 39 Income Tax Assessment Act 1997 (Cth) Pt 3-45, Div 355, ss 355-20, 355-25, 355-25(2), 355-30, 355-30(2), 355-35, 355-100(1)(a), 355-205, 355-205(1), 355-205(1)(a)(ii), 355-210, 355-210(1), 355-210(1)(a), 355-210(1)(b), 355-210(1)(c), 355-210(1)(d), 355-210(1)(e) Industry Research and Development Act 1986 (Cth) ss 4, 6, 27A, 27A(1), 27M(4), 28C, 28C(1), 28C(1)(a), 28D Tax Administration Act 1953 (Cth) ss 284-75(1), 284-75(1)(b), 284-90(1)

Cases cited: Italiano v Carbone [2005] NSWCA 177 Lee v Cha [2008] NSWCA 13 Moreton Resources Ltd and Industry Innovation and Science Australia (Taxation) [2022] AATA 3804 Moreton Resources Ltd v Innovation and Science Australia [2019] FCAFC 120; 271 FCR 211 Nathanson v Minister for Home Affairs [2022] HCA 26; 403 ALR 398 SZUR v Minister for Immigration and Border Protection [2013] FCAFC 146; 216 FCR 445