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.