Tribunal clears taxpayer of evasion in landmark residency case

The Administrative Review Tribunal's decision in Kirtlan and Commissioner of Taxation [2025] ARTA 539 is the subject of the latest episode of Velocity Legal's Explain That podcast, featuring Andrew Henshaw and Tyson Bateman. The case concerned a taxpayer who split time between Australia and the UK from 2006–2008 and lodged returns in each country on the basis he was not a tax resident there. The ATO issued amended assessments outside the standard time limit, alleging evasion, with a tax shortfall of $3.79 million and penalties of $1.9 million. The Tribunal found the taxpayer had provided a credible explanation based on advice from a fully informed tax adviser and was not attended by evasion, setting aside the Commissioner's objection decision. Velocity Legal notes the case as a reminder that, absent the standard two-to-four-year amendment window, ATO fraud-or-evasion findings can allow reassessment many years after a return is lodged.

Read in full: https://www.velocitylegal.com.au/blog/ato-fraud-or-evasion-how-far-back-can-the-ato-amend-your-tax-returns