CTHAATA
_Birkenhead, Lancashire and Cheshire Railway Co v Pilcher_
[2004] AATA 1304
Administrative Appeals Tribunal of Australia|2004-12-07
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Source factsCourt
Administrative Appeals Tribunal of Australia
Decision date
2004-12-07
Source
Original judgment source is linked above.
Judgment (37 paragraphs)
[1]
- The applicant, an individual taxpayer, applied for review of the respondent's decisions to disallow his objections to his amended assessments to income tax for the years ended 30 June 1997 and 30 June 1998. By s 14ZZK(b)(i) of the Taxation Administration Act 1953, he had the burden of proving that the assessments are excessive.
- In the 1997 year the applicant sold shares that he had acquired after 19 September 1985, at a capital gain. The respondent reduced the cost base of the shares for the purposes of Part IIIA of the Income Tax Assessment Act 1936 ('the Act') by $37,308. This adjustment increased the applicant's net capital gain for the 1997 year and so produced a tax shortfall for that year. The respondent charged additional tax of 25% of the shortfall pursuant to s. 226K of the Act. The applicant submitted that the amount of $37,308 was correctly included in the cost base of the shares pursuant to s.160ZH(1)(c) of the Act and, in any event, the additional penalty tax should be remitted because it was reasonably arguable, when his 1997 return was lodged, that that amount was correctly included in the cost base of the shares. The applicant made a further submission that certain amounts which he did not include in the cost base of the shares, pursuant to s 160 ZH (1)(c) of the Act, when he completed his return, be now included in the cost base of the shares.