05 Dec 12 Penalty in respect of claim for PAYG credits remitted in full - Waldeck
The AAT has remitted in full a penalty imposed by the Commissioner on a taxpayer who claimed credits for PAYG that had not been withheld by his employer. The taxpayer had sought the advice of a lawyer and had a number of conversations with the ATO Help Line that provided advice that was described by the AAT as "not very helpful".
The AAT said, at para 21:
"Having been honest in his disclosures [to the ATO Help Line], it would be harsh to impose a penalty for doing something that the Commissioner’s officers might have stopped the [taxpayer] from doing. There is no purpose served by imposing the penalty, and the system is not undermined if the penalty were remitted."
Waldeck and FCT  AATA 848 (AAT, McCabe SM, 3 December 2012)