Public Ruling TAA000.1.9 Part 6 of the Taxation Administration Act 2001—objections, reviews and appeals

A public ruling, when issued, is the published view of the Commissioner of State Revenue (the Commissioner) on the particular topic to which it relates. It therefore replaces and overrides any existing private rulings, memoranda, manuals and advice provided by the Commissioner in respect of the issue(s) it addresses.

Where a change in legislation or case law (the law) affects the content of a public ruling, the change in the law overrides the public ruling—that is, the Commissioner will determine the tax liability or eligibility for a concession, grant or exemption, as the case may be, in accordance with the law.

What this ruling is about

  1. The purpose of this public ruling is to clarify the objection, appeal and review rights available to taxpayers.
  2. Part 6 of the Taxation Administration Act 2001 (Administration Act) outlines the process of:
    1. objections against assessments, reassessments and royalty valuation decisions
    2. appeals against, and applications for reviews of, objection decisions.
  3. Part 6 of the Administration Act applies to the following revenue laws:
    1. Duties Act 20011 (Duties Act)
    2. Payroll Tax Act 19712
    3. Land Tax Act 20103 (Land Tax Act)
    4. the repealed Land Tax Act 19154
    5. the repealed Stamp Act 18945
    6. Betting Tax 20186
    7. Chapter 11 of the Mineral Resources Act 1989 (Mineral Resources Act) and any other provision of that Act to the extent they are administered by the Minister with Ministerial responsibility for the Administration Act7
    8. Chapter 6 of the Petroleum and Gas (Production and Safety) Act 2004 (Petroleum and Gas Act) and any other provision of that Act to the extent they are administered by the Minister with Ministerial responsibility for the Administration Act.8

Ruling and explanation

Right of objection to assessment

  1. An assessment is a determination of a taxpayer’s liability for tax, under Part 3 of the Administration Act, for which an assessment notice is given. It includes a reassessment.
  2. Section 63 of the Administration Act provides a taxpayer with a right of objection to the following:
    1. an original assessment9, other than a compromise assessment10
    2. a reassessment increasing a taxpayer’s liability for tax11
    3. a reassessment under s.18(b) of the Administration Act decreasing a taxpayer’s liability for tax12
    4. a reassessment of the taxpayer’s liability for royalty payable under the Mineral Resources Act that
      1. varies the amount payable to the State and the amount payable to another person
        and
      2. does not change the taxpayer’s total liability for royalty.13
  3. The right of objection to a reassessment is limited to the changes for the particular matters for which the reassessment is made.
  4. A decision or conduct leading up to or forming part of the process of making an assessment is subject to objection only as part of an objection to the assessment.
  5. Part 6 of the Administration Act also applies to a decision to which s.500 of the Duties Act applies as if the decision not to reassess was an assessment.14

Right of objection to royalty valuation decisions

  1. A royalty valuation decision (RVD) is a decision under the Mineral Resources Act about the gross value of a mineral including an amended RVD.15 It also includes a petroleum royalty decision (PRD) and an amended PRD made, after 1 October 2020, under a former provision16 of the Petroleum and Gas Act.17
  2. Section 63A of the Administration Act provides a taxpayer with a right of objection against the following:
    1. an original RVD18
    2. an amended RVD, but the right of objection is limited to the changes for the particular matters for which the amended RVD is made.19
  3. A decision or conduct leading up to or forming part of the process of making an RVD is subject to objection only as part of an objection to the RVD.

Grounds of objection

  1. An objection against an assessment or RVD may be made on any grounds20, with the following exceptions:
    1. For a land tax assessment or reassessment, an objection may not be made on the grounds that the value made under the Land Valuation Act 2010 (LVA value) for an area of land is excessive.21
    2. For a decision to which s.500 of the Duties Act applies, the grounds of objection are limited to whether the particular circumstances apply for the instrument or transaction to which the decision relates.22
    3. If an RVD relates to an assessment, a matter relating to the decision may only be raised in an objection to the decision under s.63A of the Administration Act and not be raised in an objection to the assessment under s.63 of the Administration Act.23

Making an objection

  1. An objection must:
    1. be in writing
    2. state in detail the grounds on which the objection is made
    3. be accompanied by copies of all material relevant to decide the objection
    4. be lodged within 60 days after the following notice is given to the taxpayer:
      1. the assessment notice for the assessment to which the objection relates—for an objection under s.63 of the Administration Act
      2. a notice for the RVD to which the objection relates—for an objection under s.63A of the Administration Act.24
  2. Objections may be lodged by completing the objection form.25 Alternatively, a letter can be written. The form or submission must be signed by the taxpayer or the taxpayer’s duly authorised agent.
  3. An extension of time may be given for the lodgement of the objection if the Commissioner is satisfied it would be unreasonable in particular circumstances for the objection to be lodged within 60 days.26
  4. An extension of time to lodge an objection is not granted automatically. The Commissioner will not consider a verbal request for an extension of time. The request for an extension of time must be made in writing, in either the objection form or the submission, and must outline the full facts and circumstances of why the extension of time is sought. The Commissioner’s decision to refuse to extend the time for lodging an objection is a non-reviewable decision.27
  5. For objections under s.63 of the Administration Act, the taxpayer must pay the assessment or reassessment on or before the due date even if the taxpayer has lodged, or intends to lodge, an objection. Failure to do so will result in unpaid tax interest accruing under s.54 of the Administration Act.
  6. The lodgement of an objection does not affect the Commissioner’s power under s.45 of the Administration Act to recover unpaid tax law28 amounts as debts due to the State.
  7. The onus of proof for an objection is on the person making the objection.29

Determination of the objection

  1. If a delegate of the Commissioner made the assessment, reassessment or RVD against which the objection is lodged, that delegate will not decide the objection.30
  2. The Commissioner must give written notice to the objector of the Commissioner’s decision on the objection (the objection decision).31
  3. If the objection is allowed in part or disallowed, the notice must state:
    1. the decision
    2. the reasons for the decision
    3. that the taxpayer has a right to appeal to the Supreme Court (the court), or to apply, as provided under the Queensland Civil and Administrative Tribunal Act 2009 (the QCAT Act), to the Queensland Civil and Administrative Tribunal (QCAT) for a review of the objection decision
    4. how, and the period within which, the taxpayer may appeal or apply for the review.32
  4. For an objection under s.63 of the Administration Act, there is no right of appeal or review if the whole of the amount of the tax (or for royalty payable under the Mineral Resources Act, the whole of the amount of royalty assessed as payable to the State) and late payment interest payable under the assessment or reassessment to which the objection decision relates has not been paid.33

Appeal process

  1. To start an appeal to the court:
    1. A notice of appeal must be filed with the court within 60 days after notice is given to the taxpayer of the objection decision (no extension of time is available for filing the notice).34
    2. Written notice of the appeal must be given to the Commissioner within seven days after the notice of appeal is filed with the court.35
  2. The notice of appeal must state fully the grounds of the appeal and the facts relied on.36 The grounds of the appeal are limited to the grounds of the objection unless the court orders otherwise.37
  3. For objection decisions relating to land tax assessments or reassessments, no right of appeal against an objection decision exists on the grounds that the LVA value for an area of land is excessive.38
  4. The appellant has the onus of proving the appellant’s case.39
  5. If the court is satisfied that evidence material to the objection was not submitted to the Commissioner when the objection was decided and the evidence is admitted to the court, then the court must:
    1. adjourn the hearing of the appeal
    2. direct the Commissioner to reconsider the objection having regard to the evidence and any other evidence obtained by the Commissioner.40
  6. Paragraphs 28(a) and (b) do not apply if the Commissioner requests the court to continue the hearing without the Commissioner reconsidering the objection.41
  7. If the Commissioner does reconsider the objection, the Commissioner has all the powers conferred by the Administration Act.42
  8. The court must allow the appeal completely, or partly, or disallow it.43

Review process

  1. To make an application for review by QCAT, an application must be filed in the QCAT’s registry. The application must be made using the approved form44 and state the reasons for the application.45
  2. The application must be filed with QCAT within 60 days after notice is given to the taxpayer of the objection decision.46 No extension of time is available for filing the application.47
  3. The principal registrar of QCAT may accept the application (conditionally48 or unconditionally), or reject the application on the grounds that:
    1. the application is made by a person who is not authorised to make it
    2. the application is made after the expiry of the period within which it is required to be made
    3. the application does not otherwise comply with the QCAT Act or the QCAT Rules.49
  4. A proceeding in QCAT commences when the principal registrar accepts the application (conditionally or unconditionally).50
  5. Once the proceeding commences, the applicant must give a copy of the application to the Commissioner within seven days after the application is accepted by the principal registrar of QCAT.51
  6. The grounds on which the application for review can be made are limited to the grounds of objection unless QCAT orders otherwise.52
  7. For objection decisions relating to land tax assessments or reassessments, an application for review of an objection decision may not be made on the basis that the LVA value for an area of land is excessive.53
  8. QCAT must hear and decide the review of the objection decision by way of a reconsideration of the evidence that was before the Commissioner at the time of making the objection decision, unless it considers it necessary in the interests of justice to allow new evidence.54
  9. The review must be decided in accordance with the same law that applied when the assessment, reassessment, RVD or amended RVD the subject of the objection decision was made.55
  10. The applicant has the onus of proving the applicant’s case.56
  11. QCAT may, at any stage in a proceeding, invite the Commissioner to reconsider the objection decision the subject of the proceeding. The Commissioner will then have 28 days to reconsider the decision. If, as a result of the reconsideration:
    1. the Commissioner confirms the objection decision—the proceeding for the review of the objection decision must continue
    2. the Commissioner either amends the objection decision or sets aside the objection decision and substitutes another decision (the replacement decision)—the proceeding for the review will continue, but will be in relation to either the objection decision (as amended) or the replacement decision.57
  12. QCAT may:
    1. confirm or amend the objection decision
    2. set aside the objection decision and substitute its own decision
    3. set aside the objection decision and return the matter to the Commissioner for reconsideration , with such directions as QCAT considers appropriate.58

Effect of reassessment or amendment of RVD after appeal or review started

  1. If a taxpayer has appealed to the court against, or applied to QCAT for a review of, an objection decision, the Commissioner may make a reassessment of the taxpayer’s liability for tax or an amended RVD after the appeal or review has started but before the appeal or review has been decided (post-objection reassessment or amended RVD).59
  2. If the Commissioner makes a post-objection reassessment or amended RVD, the taxpayer may do one of the following:
    1. continue or withdraw the existing appeal or the taxpayer’s application for review
    2. instead of objecting to the post-objection reassessment or amended RVD, change the grounds of appeal or review, by filing notice of the change with:
      1. the registrar of the court, for appeals
      2. the registrar of QCAT, for reviews.60
  3. The taxpayer may only change the grounds of appeal or review to the extent that the taxpayer would have the right of objection to the post-objection reassessment or amended RVD.61

Date of effect

  1. This public ruling takes effect from 1 October 2020.

 

Mark Jackson
Commissioner of State Revenue
Date of issue: 1 October 2020

References

 Public Ruling Issued  Dates of effect
From To
TAA000.1.9 1 October 2020 1 October 2020 Current
TAA000.1.8 27 September 2018 1 October 2018 30 September 2020
TAA000.1.7 5 January 2016 5 January 2016 30 September 2018
TAA000.1.6 1 July 2014 1 July 2014 4 January 2016
TAA000.1.5 6 June 2011 1 July 2011 30 June 2014
TAA000.1.4 30 June 2010 30 June 2010 30 June 2011
TAA000.1.3 1 December 2009 1 December 2009 29 June 2010
TAA000.1.2 3 July 2009 30 June 2009 30 November 2009
TAA000.1.1 24 February 2009 24 February 2009 29 June 2009
Supersedes Revenue Ruling TA 5.1 1 July 2005 1 July 2005 23 February 2009

Footnotes

  1. Sections 3 and 6(1) of the Administration Act
  2. Sections 3 and 6(2) of the Administration Act
  3. Sections 3 and 6(4) of the Administration Act
  4. Section 167 of the Administration Act
  5. Section 157 of the Administration Act
  6. Sections 3 and 6(5) of the Administration Act
  7. Sections 3 and 6(6) and (7) of the Administration Act
  8. Sections 3 and 6(8) and (9) of the Administration Act
  9. Defined in Schedule 2 of the Administration Act
  10. Section 12 of the Administration Act
  11. Section 63(2)(a) of the Administration Act
  12. Section 63(2)(b) of the Administration Act
  13. Section 63(2)(c) of the Administration Act
  14. Section 500(3) of the Duties Act
  15. Defined in Schedule 2 of the Administration Act
  16. A former provision means the provision as in force from time to time before 1 October 2020.
  17. Section 186 of the Administration Act
  18. Section 63A(1) of the Administration Act
  19. Section 63A(2) and (3) of the Administration Act
  20. Section 64(1) of the Administration Act
  21. Section 81(1) of the Land Tax Act and s.27 of the Land Tax Act 1915
  22. Section 64(2) of the Administration Act
  23. Section 64(3) of the Administration Act
  24. Section 65(1) of the Administration Act
  25. Form OSR–GEN1–Objection can be found at www.publications.qld.gov.au.
  26. Section 65(2) of the Administration Act
  27. Section 65(3) and Part 6, Division 3 of the Administration Act
  28. A tax law is defined in Schedule 2 of the Administration Act as a revenue law or the Administration Act.
  29. Section 66 of the Administration Act
  30. Section 67(2) of the Administration Act
  31. Section 68(1) of the Administration Act
  32. Section 68(2) of the Administration Act
  33. Section 69(1)(b) and (5) of the Administration Act
  34. Section 70(2) and (3) of the Administration Act
  35. Section 70(1) of the Administration Act
  36. Section 70(4) of the Administration Act
  37. Section 70(5) of the Administration Act
  38. Section 81(2) of the Land Tax Act and s.28(1) of the Land Tax Act 1915
  39. Section 70A of the Administration Act
  40. Section 70B(1) and (2) of the Administration Act
  41. Section 70B(3) of the Administration Act
  42. Section 70B(4) of the Administration Act
  43. Section 70C of the Administration Act
  44. Rule 7 of the Queensland Civil and Administrative Rules 2009 (the QCAT Rules). The approved form for applying for a review by QCAT is QCAT Form 23—Application to review a decision.
  45. Section 33(1) and (2) of the QCAT Act
  46. Section 69(2)(b) of the Administration Act
  47. Section 69(3) of the Administration Act
  48. Rule 18 of the QCAT Rules sets out the conditions that may be imposed.
  49. Section 35 of the QCAT Act
  50. Section 36 of the QCAT Act
  51. Section 37(2) of the QCAT Act and rule 19 of the QCAT Rules
  52. Section 71(2) of the Administration Act
  53. Section 81(3) of the Land Tax Act and s.28(2) of the Land Tax Act 1915
  54. Section 71(3) of the Administration Act
  55. Section 71(3) of the Administration Act
  56. Section 73 of the Administration Act
  57. Section 23 of the QCAT Act
  58. Section 24 of the QCAT Act
  59. Section 69A(1) of the Administration Act
  60. Section 69A(2) of the Administration Act
  61. Section 69A(3) of the Administration Act