TAA000.1.2—Part 6 of the Taxation Administration Act 2001—objections and appeals

1. Part 6 of the Taxation Administration Act 2001 (the Administration Act) outlines the process of objections and appeals against assessments. Division 1 covers objections and Division 2 covers appeals.
2. Part 6 of the Administration Act applies to the following revenue laws:
   1. Duties Act 2001¹
   2. Payroll Tax Act 1971, except in relation to payroll tax liabilities arising before 1 July 2005²
   3. Land Tax 1915.³
3. The purpose of this Public Ruling is to clarify the objection and appeals rights available to taxpayers.

Right of objection

4. Section 63 of the Administration Act provides a taxpayer with a right of objection to the following:
   1. an original assessment⁴, other than a compromise assessment⁵
   2. a reassessment⁶ increasing a taxpayer’s liability for tax or a reassessment under s.18(b) decreasing a taxpayer’s liability for tax. However the right of objection is limited to the changes for the particular matters for which the reassessment is made.
5. Part 6 of the Administration Act also applies to a decision to which s.500 of the Duties Act 2001 applies as if the decision not to reassess was an assessment.
6. There is no approved form, or other form for an objection—a letter will suffice. The letter must be signed by the taxpayer or the taxpayer’s duly authorised agent.
7. An objection against an assessment may be made on any grounds⁷, with the following exceptions:
   1. for a land tax assessment, an objection may not be made on the grounds that the relevant unimproved value assigned to an area of land or interest in land is excessive if the underlying value, or each underlying value, is the value of the area or interest made or caused to be made by the chief executive under the Valuation of Land Act 1944⁸
   2. for a decision to which s.500 of the Duties Act 2001 applies, the grounds of objection are limited to whether the particular circumstances apply for the instrument or transaction to which the decision relates.⁹
8. The objection must:
   1. be in writing
   2. state in detail the grounds of objections
   3. be accompanied by copies of all materials relevant to decide the objection
      
      and
      
   4. be lodged within 60 days after the assessment notice for the assessment to which the objection relates is given to the taxpayer.¹⁰
9. An extension of time may be given for the lodgement of the objection if the Commissioner is satisfied it would be unreasonable in the particular circumstances for the objection to be lodged within 60 days.¹¹
10. The extension of time is not granted automatically. The Commissioner will not consider a verbal request for an extension of time. The request for an extension of time must be made in writing and must outline the full facts and circumstances of why the extension of time is sought.
11. The Commissioner’s decision to refuse to extend the time for lodging an objection is a non-reviewable decision¹².
12. As the timeframe for lodging the objection is longer than the timeframe for paying the assessment, the taxpayer must pay the assessment on or before the due date  even if the taxpayer intends lodging or has lodged an objection. Otherwise unpaid tax interest will accrue under s.54 of the Administration Act.
13. The lodgement of an objection does not affect the Commissioner’s power under s.45 of the Administration Act to recover unpaid tax law¹⁴ amounts as debts due to the State.

Determination of the objection

14. The onus of proof for an objection is on the person making the objection.¹⁵
15. If a delegate of the Commissioner made the assessment against which the objection is lodged that delegate will not decide the objection.¹⁶
16. The Commissioner must give written notice to the objector of the Commissioner’s decision on the objection.¹⁷
17. If the objection is allowed in part or disallowed, the notice must state the reasons for the decision, the time in which the objector may appeal and how the objector may appeal.¹⁸
    

Right of appeal

18. Section 69 of the Administration Act provides that if a taxpayer is dissatisfied with the Commissioner’s decision on the taxpayer’s objection, the taxpayer may appeal to the Supreme Court.
19. However, no right of appeal exists if the whole of the amount of the tax and late payment interest payable under the assessment to which the appeal relates has not been paid.¹⁹
    

Appeal process

20. The notice of appeal must be filed with the Supreme Court within 60 days after notice is given to the taxpayer of the Commissioner’s decision on the objection. No extension of time is available for filing the notice.²⁰
21. Written notice of the appeal must be given to the Commissioner within 7 days after the notice of appeal is filed.²¹
22. The notice of appeal must state fully the grounds of the appeal and the facts relied on.²²
23. The grounds of the appeal are limited to the grounds of objection unless the Supreme Court orders otherwise.²³ In relation to land tax assessments, no right of appeal against the Commissioner’s decision on an objection to an assessment exists on the grounds that the relevant unimproved value assigned to an area of land or interest in land is excessive if the underlying value, or each underlying value, is the value of the area or interest made or caused to be made by the chief executive under the Valuation of Land Act 1944.²⁴
24. The appellant has the onus of proving the appellant’s case.²⁵
25. If the Supreme Court is satisfied that evidence material to the objection was not submitted to the Commissioner when the objection was decided and the evidence is admitted to the Court subject to s.70(5) of the Administration Act then:
    1. the Court must adjourn the hearing of the appeal
       
       and
       
    2. the Court must direct the Commissioner to reconsider the objection having regard to the evidence and any other evidence obtained by the Commissioner.²⁶
26. Paragraphs 25(a) and (b) do not apply if the Commissioner requests the Court to continue the hearing without the Commissioner reconsidering the objection.²⁷
27. If the Commissioner does reconsider the objection, the Commissioner has all the powers conferred by the Administration Act.²⁸
28. If the Commissioner makes a reassessment after an appeal against the assessment is started then on receiving the assessment notice for the reassessment, the taxpayer may:
    1. continue or withdraw the existing appeal
       
       or
       
    2. instead of objecting to the reassessment, change the grounds of appeal, by filing notice of the change with the registrar of the Supreme Court. The taxpayer may only change the grounds of appeal to the extent that the taxpayer would have the right of objection to the reassessment.²⁹
29. The Supreme Court must allow the appeal completely, or partly, or disallow it.³⁰
    

30. This Public Ruling takes effect from 30 June 2009. 

 

David Smith
Commissioner of State Revenue
Date of Issue 3 July 2009

Public Ruling	Issued	Dates of effect
		From	To
TAA000.1.2	3 July 2009	30 June 2009	Current
TAA000.1.1	24 February 2009	24 February 2009	29 June 2009
Supersedes Revenue Ruling TA 5.1	1 July 2005	1 July 2005	24 February 2009