McAndrew v Commissioner of Taxation [1956] HCA 62

McAndrew v Commissioner of Taxation [1956] HCA 62

On an appeal against an amended assessment made under s. 170(2), it is the taxpayer, not the Commissioner, who bears the onus of proving to the reasonable satisfaction of the Court any facts taking the case outside s. 170(2)—that a full and true disclosure was made and that there has been no avoidance of tax. The statutory scheme (particularly s. 190(b)) and the nature of the proceedings make it clear that the taxpayer must establish that the assessment is excessive, including by disproving the factual conditions underpinning the Commissioner's power to amend.

Jurisdiction
Australia
Procedural Posture
Case Stated (appeal Against Amended Assessment) / Full Court – Questions of Law Stated for the High Court
Outcome
Questions answered as follows: 1. No. 2 & 3. Do not arise.
Legal Topics
['income Tax' 'burden of Proof in Tax Appeals' 'assessment Amendment' 'procedure on Appeal From Amended Assessments']
['taxation Law'] ['income Tax' 'burden of Proof in Tax Appeals' 'assessment Amendment' 'procedure on Appeal From Amended Assessments']

Case Brief

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Procedural Posture

Case Stated (appeal Against Amended Assessment) / Full Court – Questions of Law Stated for the High Court

Legal Issues

  1. 1 ["Whether, upon a taxpayer's appeal against an amended assessment under s. 170(2) of the Income Tax and Social Services Contribution Assessment Act 1936-1955, the burden lies upon the Commissioner to prove that (a) the taxpayer did not make a full and true disclosure of all material facts necessary for assessment, and (b) there was an avoidance of tax, or whether the burden lies upon the taxpayer."]

Ratio Decidendi

On an appeal against an amended assessment made under s. 170(2), it is the taxpayer, not the Commissioner, who bears the onus of proving to the reasonable satisfaction of the Court any facts taking the case outside s. 170(2)—that a full and true disclosure was made and that there has been no avoidance of tax. The statutory scheme (particularly s. 190(b)) and the nature of the proceedings make it clear that the taxpayer must establish that the assessment is excessive, including by disproving the factual conditions underpinning the Commissioner's power to amend.

Court Disposition

Questions answered as follows: 1. No. 2 & 3. Do not arise.

Orders

  • ['Costs of the case stated to be paid by the respondent in accordance with the order of the Chief Justice of 24th July 1956.']