Small Taxation Disputes
The Small Taxation Claims Tribunal (STCT) started in 1 July 1997. It is part of
the Administrative Appeals Tribunal's Taxation Appeals Division. The STCT was created
to provide a cheaper and more informal means for taxpayers to obtain merits review
of taxation decisions where the amount of taxation in dispute is less than $5,000,
or where there has been a refusal to extend time to lodge an objection.
Documents
The AAT and the Australian Taxation Office (ATO) agree that, within 14 days of receiving
notice of an STCT application, the ATO lodges with the Tribunal the documents required
under section 37 of the Administrative Appeals Tribunal Act 1975 (Section
37 Documents). The ATO sends a copy of the Section 37 Documents to the applicant
or their representative at the same time as they are lodged with the Tribunal.
Conferences
Conferences are conducted by a Tribunal member or Conference Registrar. In most
STCT applications there is only one conference. Both you and the ATO officer attend
in person. This is unless the Tribunal is satisfied that there are geographic or
other reasons why this should not occur.
The Tribunal member or Conference Registrar conducting the conference often uses
mediation techniques to assist to resolve the application.
Before First Conference
Both parties should consider the issues in dispute and be prepared to discuss them.
The applicant must ensure that any relevant information, such as financial records
or other documents not included in the Section 37 Documents, are available to bring
to the first conference. If it is impractical to bring the information to the first
conference, the applicant must make arrangements to allow the ATO to inspect the
documents before the first conference.
First Conference
The first, and usually only, conference is held approximately 4 weeks after the
application for review is lodged. At the conference there is a discussion of the
issues in dispute, the facts surrounding those issues, any relevant information
that the applicant has brought and the need to obtain any further evidence. The
prospects for settlement are explored.
If the application does not settle at the first conference, a hearing date is set.
The hearing date is within 6 weeks of the first conference.
Second Conference
A second conference is only listed if the Tribunal member or Conference Registrar
conducting the first conference is satisfied that there is a real prospect of the
application settling as a consequence of that conference or special circumstances
exist. Any second conference takes place within 4 weeks of the first conference.
A hearing date is set after the first conference even if a second conference is
to take place. The hearing date occurs within 6 weeks of the first conference.
The parties must have completed all steps agreed to, or directed at the first conference,
before the second conference. If not, the second conference is vacated and the matter
proceeds directly to hearing.
Mediation
If the application does not resolve at, or shortly after the first conference, a
party may request mediation. The Tribunal may also recommend to the parties that
mediation take place. As mediation requires the consent of both parties, mediation
is only listed if both parties consent. Any request for mediation is made at, or
within 2 weeks of, the first conference.
Evidence at Hearing
To simplify proceedings and reduce the need to call witnesses at a hearing, one
of the following procedures may be adopted. The Tribunal member
or Conference Registrar conducting a conference (after consulting with the member
presiding at the hearing) adopts one of the procedures only if it is appropriate
in the circumstances of the particular application.
Statement of Agreed Facts
Where the application involves a question of law and/or statutory interpretation
and the applicant is represented, the Tribunal may require the parties to lodge
a statement of agreed facts signed by both parties 7 days prior to the hearing.
At the hearing, any oral evidence or cross-examination is only about the facts in
dispute.
or
Statement of Facts Not in Dispute
Where the applicant is not represented and there is no substantial dispute as to
the facts, the Tribunal may require the ATO to prepare a document which sets out
all the facts which the ATO does not dispute. The ATO would be required to lodge
the document with the Tribunal and give it to the applicant 7 days prior to any
hearing.
or
Witness Statements
Where there is no substantial agreement as to the facts, the Tribunal may require
the parties to prepare written witness statements. The parties are required to lodge
the statements with the Tribunal and give them to the other party 7 days before
the hearing. The statement is treated as the evidence of the witness and cross-examination
is only about the facts in dispute.
Decisions
All Tribunal decisions are delivered orally at the end of the hearing. Written reasons
are only provided if requested by one of the parties under section 43(2A) of the
Administrative Appeals Tribunal Act 1975.