Chhua v Commissioner of Taxation [2018] FCAFC 86

Chhua v Commissioner of Taxation [2018] FCAFC 86

The Full Court held that judicial review under s 39B of the Judiciary Act 1903 (Cth) of amended income tax assessments is limited to situations where the assessment is tainted by bad faith or tentativeness, as established in Futuris. Errors in the Commissioner's formation of an opinion (such as consideration of irrelevant matters) do not found jurisdictional error for the purpose of invalidating the assessment; such errors are errors within jurisdiction and must be addressed through the Part IVC merits review process. The attack on the opinion did not fall outside the operation of s 175, as the protection under that section applies unless the relevant jurisdictional error (bad faith or...

Jurisdiction
Australia
Judgment Date
06 June 2018
Procedural Posture
Appeal / Application for Extension of Time and Leave to Appeal; Appeal Against Decision on Demurrer
Outcome
Appeal dismissed with costs
Legal Topics
['jurisdictional Error' 'income Tax Assessment' 'judicial Review' 'demurrer' 'extension of Time' 'leave to Appeal']
['taxation Law' 'administrative Law'] ['jurisdictional Error' 'income Tax Assessment' 'judicial Review' 'demurrer' 'extension of Time' 'leave to Appeal']

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Procedural Posture

Appeal / Application for Extension of Time and Leave to Appeal; Appeal Against Decision on Demurrer

Legal Issues

  1. 1 ["Whether errors in the formation of the Commissioner's opinion as to fraud or evasion are reviewable under s 39B of the Judiciary Act 1903 (Cth)" 'Whether grounds for review extend beyond tentativeness and bad faith as held in Federal Commissioner of Taxation v Futuris Corporation Ltd (2008) 237 CLR 146' 'Whether the formation of the opinion concerning fraud or evasion is an anterior step not protected by s 175 of Income Tax Assessment Act 1936 (Cth)' "Whether 'no opinion' was formed as a basis for jurisdictional error"]

Ratio Decidendi

The Full Court held that judicial review under s 39B of the Judiciary Act 1903 (Cth) of amended income tax assessments is limited to situations where the assessment is tainted by bad faith or tentativeness, as established in Futuris. Errors in the Commissioner's formation of an opinion (such as consideration of irrelevant matters) do not found jurisdictional error for the purpose of invalidating the assessment; such errors are errors within jurisdiction and must be addressed through the Part IVC merits review process. The attack on the opinion did not fall outside the operation of s 175, as the protection under that section applies unless the relevant jurisdictional error (bad faith or...

Court Disposition

Appeal dismissed with costs

Orders

  • ['The application for an extension of time for the filing of a notice of appeal be granted.' 'The application for leave to appeal be granted.' 'The appeal be dismissed with costs, as agreed or as assessed.']