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Tax agents should be aware that the taxpayer in Trustee for Barth Family Trust v FC of T [2025] ARTA 1558 has appealed the recent Administrative Review Tribunal (ART) decision to the Federal Court.
The ART found that the taxpayer was not entitled to input tax credits claimed in activity statements lodged more than four years after their respective due dates. The decision turned on the operation of section 93-5 of the A New Tax System (Goods and Services Tax) Act 1999, which provides that entitlement to input tax credits ceases four years after the due date for lodgment of the relevant BAS.
The taxpayer had argued that the Commissioner had, either expressly or implicitly, allowed further time for lodgment, or that the time limit did not apply in the context of an objection or review. However, the ART rejected those submissions, confirming a strict interpretation of the four-year limitation period.
The Federal Court appeal is expected to focus on whether exceptions to the time limit in section 93-5 may arise in cases involving objections or review, or where the Commissioner's conduct could be taken as extending the lodgment period.
Tax agents should continue to advise clients to lodge BASs on time to preserve entitlements to input tax credits and monitor the progress of this appeal for any implications regarding the interpretation of section 93-5.
