The Legislative Interface between the Creation of a Liability to Tax and the Right to Challenge that Liability

Abstract

The "conclusive evidence" provisions in the taxation legislation have the effect of establishing conclusively (except in Pt IVC proceedings) that the amount and all the particulars in a notice of assessment produced by the Commissioner are correct. Provision is made in Pt IVC of the Taxation Administration Act 1953 (Cth) (TAA) for objections to assessments and for reviews by the Administrative Appeals Tribunal and appeals to the Federal Court. Together, the conclusive evidence provisions and Pt IVC of the TAA give voice to a legislative policy in respect of the interface between the creation of a liability to tax upon assessment under statute by an officer of the Executive, the Commissioner and the constitutionally necessary ability for the recipient of an assessment to be able to challenge that asserted liability by an invocation of judicial power. Sections 14ZZM and s14ZZR of the TAA also give voice to a legislative policy in respect of this legislative interface. This paper examines the operation of this legislative interface and highlights that the current taxation regime does not adequately address the protection of taxpayers against the impact of erroneous assessments.