A recent legal development witnessed the Australian Taxation Office (ATO) encountering a setback in the Federal Court. This particular case revolved around a decision taken by the ATO concerning a sole trader. The trader had canceled their ABN and GST registration in 2018, after which it was backdated. The aftermath of this case has attracted considerable attention, especially within the context of multiple regulatory changes. Notably, these changes encompass aspects tied to the JobKeeper program.
Case Details and Significance
The case titled Commissioner of Taxation v Apted [2021] FCAFC 45 centered around Mr. Jeremy Apted, who had acquired his ABN in 2012. However, he chose to voluntarily cancel his ABN in 2018 and subsequently resumed work in September 2019, opting not to reactivate it, under the assumption that reactivation was solely required for GST registration.
Amidst the onset of the COVID-19 pandemic, Mr. Apted endeavored to reactivate his ABN and applied for the JobKeeper subsidy. Regrettably, the ATO rejected his JobKeeper application, citing the absence of his ABN on March 12, 2020. Taking swift action, Mr. Apted retroactively restored his ABN to July 1, 2019, aiming to rectify the situation. However, the ATO persisted in dismissing his JobKeeper application. Subsequently, Mr. Apted pursued a review through the Administrative Appeals Tribunal (AAT), which ultimately ruled in his favor, acknowledging his eligibility for the JobKeeper payment.
Legal Proceedings and Implications
Dissatisfied with the AAT’s verdict, the ATO lodged an appeal with the full court. Yet, come March 2021, the AAT’s ruling remained upheld. In his decision, Honourable Justice John Logan emphasized that Mr. Apted had indeed been engaged in an enterprise before March 12, 2020. He questioned the ATO’s position, particularly in light of the pandemic’s profound influence on businesses.
While initially contemplating a potential appeal to the High Court, the ATO recently announced their acknowledgment of the Federal Court’s judgment and their decision not to pursue further appeals. Consequently, the ATO intends to revisit past instances where applications for JobKeeper and cash flow boosts were denied. This review aims to identify any disparities between the rationales for their decisions and the findings of the court.
How We Can Assist
If you have encountered prior refusals of JobKeeper or Cashflow Boost payments, now presents an opportune time to seek our assistance. As a prominent practicing CPA accountant in Inner West Sydney and Adelaide, we boast a proven record of aiding clients in challenging ATO determinations. Our expertise can serve as a valuable asset in navigating intricate tax matters, ensuring you access the entitlements you rightfully deserve.
Furthermore, ongoing dialogues between tax professionals and regulatory authorities have underscored the evolving interpretations of taxable supply. This emphasizes the critical nature of procuring tailored professional advice in alignment with your unique circumstances.
To address your concerns and explore potential opportunities, don’t hesitate to reach out to EndureGo Tax at 1800 841 312. We are committed to safeguarding your financial interests and ensuring you make the most of available benefits and allowances.
