Elcheikh v FCT  AATA 859 – Taxpayer fails to show assessments were excessive
The AAT has held that a taxpayer failed to demonstrate that default amended income tax assessments were excessive. This was primarily due to the taxpayer’s failure to adduce evidence to show what his taxable income was for the relevant income years, as he had failed to keep records and had no relevant corroborating evidence to show that amounts paid to him by his father’s businesses were loans rather than wages.
Further, the Tribunal found that the taxpayer had failed to show that his tax shortfalls were not caused by fraud or evasion, and as such none of the amended assessments were made out of time.
The AAT also affirmed the significant administrative penalties the Commissioner had imposed, observing that the taxpayer’s behaviour (in failing to take an interest in his tax affairs and signing tax returns prepared by his father’s accountants but not engaging with them) constituted intentional disregard of the tax law.