Explain when a taxpayer can involve the aat in their tax

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Reference no: EM133420382

Question: Stefan Hawkins has been successful with an appeal to the AAT against his income tax assessment. The basis for the challenge was $20,000 of deductions that were disallowed by the Commissioner.

The AAT indicated that the entire amount should have been properly allowed as a deduction. The Commissioner has advised that he will not seek to have the AAT decision overturned.

The amount that was challenged by Stefan comprised $8,000 of income tax, $2,000 of additional penalties, and $1,500 of general interest charge. Stefan had paid these amounts in full.

  • Explain when a taxpayer can involve the AAT in their tax matters.
  • Which of the above amounts is the ATO obliged to refund to Stefan?
  • Are there any other amounts that the ATO must pay to Stefan as a result of the AAT decision?

 

Reference no: EM133420382

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