Treasury Laws Amendment (2022 Measures No. 2) Act 2022 (84 of 2022)

Schedule 4   Increased Tribunal powers for small business tax decisions

Taxation Administration Act 1953

3   After section 14ZZG

Insert:

14ZZH Modification of section 41 of the AAT Act

Section 41 of the AAT Act applies in relation to a reviewable objection decision that relates to a small business taxation assessment decision as if the following subsection were inserted after subsection (3):

"(3A) The Tribunal must not make an order under subsection (2), or an order varying or revoking an order in force under subsection (2), unless:

(a) the proceeding before the Tribunal is in the Small Business Taxation Division of the Tribunal; and

(b) if the party requesting the order is not the Commissioner of Taxation - the party satisfies the Tribunal that, when considered in the context of both the particular circumstances ofthe decision under review and the overall taxation system, the application for review and the request for making the order are not frivolous, vexatious, misconceived, lacking in substance or otherwise intended to unduly impede, prejudice or restrict the proper administration or operation of a taxation law.

Note 1: The kind of orders that the Tribunal may make under this section as modified by section 14ZZH of the Taxation Administration Act 1953 include the following:

(a) an order directing the Commissioner not to sue in a court to recover a specified amount relating to the reviewable objection decision (see subsection 255-5(2) in Schedule 1 to the Taxation Administration Act 1953);

(b) an order directing the Commissioner to offer or accept payment of a liability relating to the reviewable objection decision by instalments under a specified arrangement (see section 255-15 in Schedule 1 to the Taxation Administration Act 1953);

(c) an order directing the Commissioner not to issue one or more written notices to specified third parties who owe or may later owe money to the applicant as a means of recovering a liability relating to the reviewable objection decision (see section 260-5 in Schedule 1 to the Taxation Administration Act 1953).

Note 2: However, an order that would materially and permanently alter the decision under review would not be an order staying or otherwise affecting the operation or implementation of such a decision for the purpose of securing the effectiveness of the hearing and determination of the application for review. For example:

(a) an order directing the Commissioner to defer the time at which a tax liability becomes due and payable; or

(b) an order directing the Commissioner to remit the imposition of interest charges on unpaid liabilities that are due and payable.".