Review of Tax Office Management of Part IVC litigation
Appendix 6: Further information regarding the extent of tax litigation
A.6.1 This appendix first provides a summary of the finalisation of applications for review of Tax Office decisions in the Taxation Division of the Administrative Appeals Tribunal over an eight year period. The appendix also provides a comparison between the General and Veterans Division and Taxation Division within the Administrative Appeals Tribunal with respect to the finalisation of applications for review by way of consent and hearing.
A.6.2 In this appendix, the terms used are defined as follows:
- ‘Affirmed’ indicates that the Tribunal has affirmed a decision under review. This means that the original Tax Office decision still stands.
- ‘Dismissed/Withdrawn’ indicates that an application by a taxpayer has been dismissed by the Tribunal without proceeding to review the decision. An application may be dismissed, for example, by consent, or if the applicant fails to appear, or if the Tribunal is satisfied that the application is frivolous or vexatious.
- ‘Remitted’ indicates that the Tribunal has set aside the Tax Office decision and sent it back (remitted it) to the original decision maker to be reconsidered in accordance with any directions or recommendations of the Tribunal.
- ‘Set Aside’ indicates that the Tribunal has set aside a decision under review. The effect is that the Tribunal disagrees with the original Tax Office decision and makes a new decision.
- ‘Varied’ indicates that the Tribunal has varied a decision under review. This means that the Tribunal changes or alters the original Tax Office decision.
A.6.3 Chart 1 outlines the resolution of application of review cases by way of resolution type. Percentages are based on eight year averages obtained from Administrative Appeal Tribunal Annual Reports.
Chart 1: Total applications for review of a Tax Office decision to the Taxation Division of the Administrative Appeals Tribunal
A.6.4 The following four tables provide a comparison between the General and Veterans Division and Taxation Division within the Administrative Appeals Tribunal with respect to the finalisation of applications for review by way of consent and hearing.
By consent
General and Veterans Division
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
Mean |
Median | |
Affirmed (%) |
3 |
3 |
4 |
5 |
5 |
7 |
7 |
8 |
5.25 |
5 |
Dismissed/ |
35 |
31 |
31 |
27 |
30 |
30 |
33 |
34 |
31.375 |
31 |
Set Aside |
26 |
28 |
26 |
25 |
27 |
25 |
26 |
27 |
26.25 |
26 |
Varied |
7 |
9 |
10 |
10 |
10 |
7 |
6 |
5 |
8 |
8 |
Taxation Division
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
Mean |
Median | |
Affirmed (%) |
1 |
2 |
1 |
2 |
<1 |
<1 |
1 |
10 |
2.125 |
1 |
Dismissed/ |
29 |
34 |
17 |
20 |
37 |
7 |
7 |
16 |
20.875 |
18.5 |
Set Aside |
20 |
22 |
19 |
16 |
25 |
56 |
57 |
25 |
30 |
23.5 |
Varied |
22 |
16 |
42 |
40 |
14 |
32 |
28 |
23 |
27.125 |
25.5 |
By hearing
General and Veterans Division
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
Mean |
Median | |
Affirmed (%) |
12 |
13 |
13 |
15 |
11 |
14 |
16 |
14 |
13.5 |
13.5 |
Dismissed |
3 |
3 |
3 |
4 |
2 |
3 |
2 |
2 |
2.75 |
3 |
No jurisdiction |
1 |
1 |
1 |
<1 |
1 |
1 |
<1 |
<1 |
0.625 |
1 |
Set Aside |
8 |
8 |
8 |
8 |
9 |
9 |
7 |
6 |
7.875 |
8 |
Varied |
1 |
1 |
1 |
2 |
1 |
1 |
<1 |
1 |
1 |
1 |
(1) Includes matters dismissed under subsections 42A(1) and (1B) of the AAT Act and otherwise by operation of law.
(2) Includes matters dismissed under subsections 42A(2) (non appearance), 42A(4) (failure to show reviewable decision), 42A(5) (failure to comply with a direction of the Tribunal) and 42B(1) (frivolous or vexatious) of the AAT Act.
Taxation Division
1997/98 |
1998/99 |
1999/00 |
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
Mean |
Median | |
Affirmed (%) |
11 |
6 |
4 |
7 |
3 |
2 |
1 |
10 |
5.5 |
5 |
Dismissed |
6 |
4 |
1 |
8 |
7 |
0 |
2 |
4 |
4 |
4 |
No jurisdiction |
1 |
2 |
3 |
<1 |
1 |
<1 |
1 |
<1 |
1 |
1 |
Set Aside |
3 |
4 |
3 |
2 |
2 |
<1 |
<1 |
5 |
2.375 |
2.5 |
Varied |
<1 |
2 |
1 |
2 |
4 |
<1 |
<1 |
2 |
1.375 |
1.5 |
A.6.5 The following table provides information obtained from Administrative Appeal Tribunal Annual Reports regarding the number of applications for review finalised by hearing in the Taxation Division.
Number of applications for review finalised by hearing in the Taxation Division
1997/ 98 |
1998/ 99 |
1999/ 00 |
2000/01 |
2001/02 |
2002/03 |
2003/04 |
2004/05 |
Average percentage of applications finalised by resolution type | |
Affirmed |
79 |
42 |
37 |
70 |
28 |
66 |
40 |
144 |
35.9 |
Set Aside |
18 |
30 |
28 |
22 |
16 |
34 |
25 |
79 |
18.1 |
Varied |
1 |
15 |
5 |
18 |
34 |
19 |
10 |
28 |
9.6 |
Remitted |
7 |
3 |
7 |
1 |
0 |
5 |
0 |
4 |
2.3 |
Dismissed/ Withdrawn |
40 |
26 |
11 |
76 |
58 |
15 |
62 |
66 |
25.4 |
No jurisdiction |
4 |
13 |
22 |
2 |
10 |
9 |
34 |
10 |
8.7 |
Totals |
149 |
129 |
110 |
189 |
146 |
148 |
171 |
331 |
A.6.6 The following four tables provide information obtained from the Tax Office regarding the finalisation of tax litigation in 2003/04.
Non-ATP Part IVC Litigation
Jurisdiction |
Favourable to the Tax Office |
Adverse to the Tax Office |
Partially Favourable |
Total |
Small Taxation Claims Tribunal |
15 |
0 |
3 |
18 |
Administrative Appeals Tribunal |
36 |
7 |
12 |
55 |
Federal Court |
17 |
5 |
1 |
23 |
Full Federal Court |
4 |
3 |
3 |
10 |
High Court |
3 |
1 |
0 |
4 |
Total |
133 |
32 |
20 |
185 |
ATP Part IVC Litigation
Jurisdiction |
Favourable to the Tax Office |
Adverse to the Tax Office |
Partially Favourable |
Total |
Small Taxation Claims Tribunal |
0 |
0 |
0 |
0 |
Administrative Appeals Tribunal |
0 |
1 |
0 |
1 |
Federal Court |
4 |
1 |
0 |
5 |
Full Federal Court |
2 |
0 |
0 |
2 |
High Court |
0 |
0 |
0 |
0 |
Total |
6 |
2 |
0 |
8 |
Part IVC Litigation — Courts
Jurisdiction |
Favourable to the Tax Office |
Adverse to the Tax Office |
Partially Favourable |
Total |
Federal Court |
21 |
6 |
1 |
28 |
Full Federal Court |
6 |
3 |
3 |
12 |
High Court |
3 |
1 |
0 |
4 |
Total |
30 |
10 |
4 |
44 |
Part IVC Litigation — Tribunals
Jurisdiction |
Favourable to the Tax Office |
Adverse to the Tax Office |
Partially Favourable |
Total |
Small Taxation Claims Tribunal |
15 |
0 |
3 |
18 |
Administrative Appeals Tribunal |
36 |
8 |
12 |
56 |
Total |
51 |
8 |
15 |
74 |
Previous: Appendix 5
Next: Appendix 7