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The Federal Court (Stone J) has upheld a decision of the AAT which held that a taxpayer be released, in part, from his income tax liability for the years ended 30 June 2001 to 30 June 2004 on the grounds of "serious hardship". The Court could find no error in the AAT's evaluation of the evidence of hardship, or in the exercise by the AAT of its discretion to release part of the tax debt. Accordingly, the Commissioner's appeal against the AAT's decision was dismissed: Commissioner of Taxation v A Taxpayer [2006] FCA 888 (Federal Court, Stone J, 12 July 2006).

For a copy of the decision, go here

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