Lodging an objection is a first step. When you don’t agree with the ATO and want to do something about it.
Lodging an Objection
You might disagree with an assessment, amended assessment, determination, notice or decision issued by the Commissioner. Whenever you do, you can lodge an objection pursuant to s 14ZU of the Tax Administration Act 1999 (TAA).
Form
An objection lodged with the Commissioner must be made in the approved form within the period set out in s14ZW of the TAA. And it must state fully and in detail the grounds for the objection.
Time Limits
There are time limits for an objection under s 15ZU of the TAA. The limits depend on the type of assessment or decision the objection relates to.
For income tax assessments, the objection must be lodged within the amendment period, so either 2 or 4 years.
For amended income tax assessments, you can lodge an objection within the amendment period for the original assessment. Or 60 days from the date of the amended assessment. Whichever is later.
You can object a private ruling within 60 days from the date of issue . Alternatively, you can object against the original/amended assessment as long as you are within the relevant time limit.
GST assessments you can object against within four years from the date of the assessment.
And FBT assessments allow you an objection within four years from the date the FBT return was lodged.
Too Late
But there is still hope, even when you lodge an objection too late. The Commissioner can exercise discretion through ss14ZX of the TAA. And treat the objection as on time.
PS LA 2003/7 sets out the circumstances which ATO officers should consider in their review. Factors to consider for the Commissioner’s favourable discretion under s 14ZX include:
- the taxpayer’s explanation for the failure to lodge the objection within the allowable time
- the circumstances of the delay
- whether the taxpayer has an arguable case for the objection to be fully or partially allowed
Where the Commissioner declines to allow an objection after the deadline, the AAT can review this decision.
Appeal
The next step after an objection is an appeal. Where an objection is either fully or partially denied by the Commissioner, s14ZZ of the TAA allows a taxpayer to seek a review of the Commissioner’s decision by applying to the Administrative Appeals Tribunal (AAT) or the Federal Court of Australia (FCA).
Administrative Appeals Tribunal
Where an objection has been fully or partially denied, a taxpayer will often have the option to have the decision reviewed by the Administrative Appeals Tribunal (AAT).
The AAT essentially stands in the shoes of the Commissioner and can exercise the Commissioner’s discretion.
Federal Court of Australia
Alternatively or subsequently, you can appeal to the Federal Court of Australia (FCA).
The FCA, however, will generally only hear an appeal when the matter concerns either a question of law or a question of fact. The FCA will rarely exercise the Commissioner’s discretion.
Where the AAT has heard an appeal, the FCA will additionally only address questions of law and not questions of fact.
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Disclaimer: Tax Talks does not provide financial or tax advice. All information on Tax Talks is of a general nature only and might no longer be up to date or correct. You should seek professional accredited tax and financial advice when considering whether the information is suitable to your or your client’s circumstances.