Commissioner of Taxation v Bazzo [2024] FCA 452

Federal Court of Australia

Commissioner of Taxation v Bazzo [2024] FCA 452 File number: WAD 57 of 2023

Judgment of: COLVIN J

Date of judgment: 2 May 2024

Catchwords: TAXATION - assessable income - where Commissioner issued notices of assessment pursuant to s 167 of Income Tax Assessment Act 1936 (Cth) (ITAA36) - where assessments based on asset betterment statement - whether taxpayer discharged her onus under s 14ZZK(b)(i) of ITAA36 to prove assessments were excessive or otherwise incorrect - whether taxpayer required to prove all amounts subject of assessment are not taxable in order to discharge onus ('all or nothing' approach) - whether Tribunal erred in failing to make a finding as to taxpayer's assessable income - held 'all or nothing' approach rejected - held Tribunal made findings as to extent of taxpayer's income - appeal dismissed TAXATION - penalties - where Tribunal found 20% uplift on shortfall penalty under Schedule 1, s 284-220(1)(c) of Taxation Administration Act 1953 (Cth) did not apply because no penalty had been applied 'previously' - where Tribunal incorrect as to meaning of 'previously' - whether Tribunal erred in failing to consider submissions advanced by taxpayer that penalty should be remitted - held Tribunal failed to consider submissions regarding remittance - cross-appeal allowed ADMINISTRATIVE LAW - merits review of objection decision by a Tribunal - where Commissioner issued amended assessments under s 170(1) of ITAA36 on basis that there had been fraud or evasion - where Tribunal found that Commissioner had held the requisite opinion - whether Tribunal erred in its approach on review in determining whether there was fraud or evasion by not forming its own opinion - held Tribunal required to form its own opinion as to fraud or evasion