This proceeding concerned assessments issued by the Commissioner of Taxation on the basis of an ‘asset betterment’ analysis, which involves estimating taxable income by identifying changes in the assets held by the taxpayers, and identifying expenses paid by them, over the relevant time period. The taxpayers sought to challenge the assessments by leading evidence to identify their taxable income, and explain their expenditure and any changes in assets. This involved evidence concerning cash transactions, casino records of gambling activity, informal ‘Hui’ lending, and other loans between the taxpayers and their friends and family. The assessments were broadly upheld, but with some adjustments in favour of the taxpayers.
Michael May appeared for the applicant, instructed by Cooper Grace Ward.
The judgment is available here.