20 Feb 1212 Decision Impact Statement - Mold
The ATO has issued a Decision Impact Statement in relation to the decision of the AAT in Mold and FCT  AATA 823; 2011 ATC 10-220. The case concerned the use of substantiation evidence and the imposition and reduction of penalties where a taxpayer has made voluntary disclosure after the commencement of an audit.
The AAT's findings of fact included that the taxpayer (1) held invoices at the relevant time corresponding to ITCs greater than those that had been allowed and (2) had attempted to provide these invoices to the ATO however they were lost in transit; and (3) the applicant had suffered serious illness that had had undoubted impact on his business activities and capabilities. The Decision Impact Statement states that the ATO accepts that this decision was open to the AAT due to the particular facts and circumstances of this case and the evidence presented during the hearing.
The Decision Impact Statement also states that the ATO does not accept as a general principle that there will always be consistency between deductions and input tax credits due to the different laws applying to the different taxes. The relevant Acts for income tax and GST have a number of different criteria for the allowance of deductions and input tax credits, and each case needs to be looked at individually to determine the allowance of relevant amounts.