GST refund request made too late

The AAT has refused a taxpayer's request for an extension of time to apply to the AAT for review of an objection decision of the Commissioner (dated 31 October 2011) refusing a GST refund in relation to the June 2004 quarter.

Background

The Commissioner had refused the refund on the basis that the application was made after the four-year cut-off date for the June 2004 quarter (ie 28 July 2008). The taxpayer argued, among other things, that due to troubles with his then car rental business and his ill health, he did not get around to lodging tax returns and other documents until 2011 and that all his returns were now up-to-date. The AAT noted that the taxpayer had lodged the information for his June 2004 business activity statement (BAS) on 11 June 2011. The Commissioner acknowledged that the taxpayer was owed a refund of $7,659 (and had recommended that the taxpayer approach the Department of Finance and Deregulation to obtain an act of grace payment), but submitted that pursuant to s 105-55(1) of Sch 1 to the TAA, there was no discretion that could be exercised in the taxpayer’s favour because more than four years had elapsed since the time he could have claimed the money.

Decision

The AAT accepted the Commissioner's argument that there was no discretion that could be exercised in the taxpayer's favour to enable him to obtain the GST refund. The AAT held that it was not satisfied that it was reasonable in all the circumstances to exercise the discretion in s 29(7) of the Administrative Appeals Tribunal Act 1975 to grant an extension of time to the taxpayer to lodge an application for review of the Commissioner's objection decision (dated 31 October 2011).

Re Hampson and FCT [2013] AATA 731, www.austlii.edu.au/au/cases/cth/AATA/2013/731.html.