Aurora Developments Pty Ltd v Commissioner of Taxation (No. 2) [2011] FCA 1090

Aurora Developments Pty Ltd v Commissioner of Taxation (No. 2) [2011] FCA 1090

Aurora did not take reasonable care in making its Business Activity Statement for July 2004 as it failed to communicate all material facts to its advisers and did not obtain advice specifically addressing the applicability of the going concern provisions to the actual circumstances. Accordingly, the administrative...

Source-derived case information.

Parties
Applicant: Aurora Developments Pty Ltd; Respondent: Commissioner of Taxation
Jurisdiction
Australia
Judgment Date
23 September 2011
Procedural Posture
Taxation Appeal / Judgment After Hearing
Outcome
Application dismissed
Legal Topics
Administrative Penalties, Business Activity Statements, Reasonable Care Requirement, Tax Shortfall, GST Free Going Concern Provisions
Taxation Law Administrative Penalties Business Activity Statements Reasonable Care Requirement Tax Shortfall GST Free Going Concern Provisions

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Parties

Aurora Developments Pty Ltd

Applicant

Commissioner of Taxation

Respondent

Procedural Posture

Taxation Appeal / Judgment After Hearing

Legal Issues

  1. 1 Whether the applicant and its agents took reasonable care in formulating the Business Activity Statement for July 2004
  2. 2 Whether a penalty should be imposed under s 284-75(1) of Schedule 1 to the Taxation Administration Act 1953 (Cth)
  3. 3 Whether the power to amend a penalty assessment is conferred on the Commissioner under the relevant Acts

Ratio Decidendi

Aurora did not take reasonable care in making its Business Activity Statement for July 2004 as it failed to communicate all material facts to its advisers and did not obtain advice specifically addressing the applicability of the going concern provisions to the actual circumstances. Accordingly, the administrative penalty imposed by the Commissioner was justified.

Court Disposition

Application dismissed

Orders

  • The application is dismissed.
  • The respondent is directed to submit draft forms of order within seven days for further consideration by the Court.