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Objecting to Tax Assessment Notices

18th September 2009 Author: Nerissa Haskic

It is the time of year again to both lodge your Tax Returns and receive your Tax Assessment Notices (“Assessment Notice”).

For anyone who has received an Assessment Notice (either original or amended) and is dissatisfied with it, there are avenues open to object to such Notice through the Australian Tax Office (ATO). A Taxpayer has a legal right to lodge an Objection should they disagree with an ATO decision.

A Taxpayer should consider lodging an Objection if:

there is a disagreement with an Assessment received from the ATO; and/or
there is a dispute over how the ATO have interpreted the law.

Objections are not limited to personal or business Income Tax Assessments, but also include (but are not limited to) the following assessments:-

Fringe Benefits tax;
Administrative Penalty;
Fuel Tax credit;
Goods and Services Tax;
Wine Equalisation Tax;
Luxury Car Tax;
Excess Contributions;
Eligible Termination Payments; and
Superannuation Guarantee Charges.

It is always useful to call the ATO first, prior to lodging any type of objection to see if there is a simple resolution to the issue you have. However, if this is unsuccessful, the process for lodging an objection is as follows:-

1. The Taxpayer must make an objection to the ATO in writing which details all the reasons the decision may be incorrect;

2. If the Taxpayer is: -

an individual;
a company which is a small business entity for the relevant income year; and/or
an individual in the capacity of trustee for a trust estate (which is a small business entity);

The objection must generally be lodged within two (2) years of the day which the Commissioner has given the Original Assessment Notice or sixty (60) days after an Amended Assessment Notice has been given.

In other circumstances (i.e. for partnerships and medium to large business enterprises) the objection must be lodged within four (4) years of the day which the Commissioner has given the Original Assessment Notice or sixty (60) days after an Amended Assessment Notice has been given.

There are also special rules for less common entities covered under the Tax Administration Act 1953.

3. If the Taxpayer falls outside the time constraints as mentioned above, an Application can be made to the Federal Commissioner of Taxation (“FCT”), requesting an extension of the time constraint. The decision of the FCT is discretionary.

4. After considering the objection, the FCT will issue an Objection Decision. This is usually issued within twenty-eight (28) days, but may take longer depending on the circumstances.

If the Taxpayer is unhappy with the Objection Decision, application can be made to the Administrative Appeals Tribunal to have the decision reviewed. After the decision has been reviewed, if the Taxpayer is still unhappy, leave may be sought to appeal the decision of the Administrative Appeals Tribunal to the High Court of Australia.

Nerissa Haskic of our office practices in a variety of areas within Tax Law. Ms Haskic can assist clients with:

· Objections to Decisions and Appeals of Decisions made by the ATO;

· Residency & Foreign Source Income;

· Company Tax;

· Taxation of Joint Ventures and Partnerships;

· Goods and Services Tax & Margin Scheme Arrangements;

· Capital Gains Tax;

· Body Corporate Tax Issues;

· Fringe Benefits Tax;

· Taxation of Trusts

· Small Business Entities.

Should you seek advice on Objecting to an Assessment Notice or any other tax issues, please contact Nerissa Haskic on (07) 5570 9315.

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Objecting to Tax Assessment Notices