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Commissioner of Taxation v Huang (No 2) - Shortfall Penalty Remittal to ART

The Federal Court of Australia set aside part of the Administrative Appeals Tribunal's decision regarding the Commissioner of Taxation's objection to shortfall penalties and remitted the matter to the Administrative Review Tribunal for redetermination. The Court held that the taxpayer bears the burden of proving the shortfall penalty assessments were excessive or incorrect under s 14ZZK(b)(i) of the Taxation Administration Act 1953 (Cth). The ART must determine the matter on existing AAT findings of fact and evidence.

Commissioner of Taxation v Morton [2026] FCAFC 31

The Full Court of the Federal Court of Australia dismissed the Commissioner of Taxation's appeal, upholding the primary judge's decision that proceeds from the sale of subdivided residential allotments were capital receipts, not assessable income. The court affirmed that Mr Morton was not carrying on a business of property development and that the lots were not trading stock under the Income Tax Assessment Act 1997.