08 Oct 12 Decision Impact Statement - Elliott
The case concerned whether the Commissioner could amend income tax assessments for the 2006 and 2007 years more than two years after notices of the assessments were given.
The AAT found that the Commissioner was not authorised to amend the applicant's assessments for the 2006 and 2007 years more than two years after notice of those assessments was given to the taxpayer. In particular, the AAT held that item 5 of Regulation 20 of the Income Tax Regulations 1936 did not apply to extend the amendment period to four years because, for the purposes of Item 5(a), the taxpayer did identify ordinary income from foreign transactions (the income in dispute) in his returns for both years.
The Decision Impact Statement states that the ATO accepts that the AAT's view of the interpretation of Item 5 of Regulation 20, and its application of that view to the facts in this case, were properly open to it.