Onus on taxpayers to show no fraud or evasion: Full Federal Court

Several taxpayers have been unsuccessful in their appeals to thenFull Federal Court in which they challenged tax assessments that dramaticallynincreased their assessable income for certain income years. In each case, thenCourt confirmed that where the Commissioner of Taxation has issued an amendednor default assessment out of time on the grounds of taxpayer “fraud or evasion”,nthe taxpayer bears the responsibility of proving that such fraud or evasionndoes not exist.

Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.