Liang v Commissioner of Taxation [2024] FCA 535

Federal Court of Australia

Liang v Commissioner of Taxation [2024] FCA 535 Appeal from: CVMW and Commissioner of Taxation [2023] AATA 4039

File number: NSD 1581 of 2023

Judgment of: LOGAN J

Date of judgment: 14 May 2024

Catchwords: INCOME TAX – where the applicants appeal a decision of the Administrative Appeals Tribunal (the Tribunal) to affirm an objection decision made by the Commissioner – where a property trust controlled by the applicants, through a corporate trustee, received over $750,000 in cash deposits over two income years – where the Commissioner assessed those deposits as income under s 166 of the Income Tax Assessment Act 1936 (Cth) – where the applicants' unsuccessful objections to those assessments were reviewed by the Tribunal – where the Tribunal rejected the applicants' evidence that the deposits were loans or equity contributions from their respective parents – where the Tribunal considered, after rejecting the applicants' evidence, that the applicants' had not discharged their onus of proof under s 14ZZK of the Taxation Administration Act 1953 (Cth) – whether the applicants' satisfied the onus of proof – whether the Tribunal failed to perform its statutory task by not considering whether the deposits were income, based on established facts and common ground between the parties – whether deposits were income under ordinary concepts – appeal allowed APPEALS AND NEW TRIAL – where the Tribunal failed to perform its statutory task of assessing whether deposits were income – where assessment of whether deposits were ordinary income could be conducted by appeal judge, accepting the other findings of fact made by the Tribunal – whether power under s 44(7) of the Administrative Appeals Tribunal Act 1975 (Cth) should be exercised – finding made that deposits were income – Commissioner ordered to make amended assessments accordingly