Practice Directions, Guides and Guidelines

Practice Directions

Small Taxation Claims Tribunal Practice Direction

This Direction has effect from 13 March 2000.

The Small Taxation Claims Tribunal (STCT) commenced operation on 1 July 1997 and 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.

This practice direction sets out the procedures to be adopted in all STCT applications lodged with the Tribunal throughout Australia. This procedure can be varied by specific direction of the Tribunal.

1. Section 37 Documents

The Administrative Appeals Tribunal (AAT) and the Australian Taxation Office (ATO) have agreed that, within 14 days of receiving notice of an STCT application, the ATO will lodge with the Tribunal the documents required under section 37 of the Administrative Appeals Tribunal Act 1975 (Section 37 Documents). The ATO will send a copy of the Section 37 Documents to the applicant or their representative at the same time as they are lodged with the Tribunal.

2. Conferences

Conferences are conducted by a Tribunal member or Conference Registrar. In most STCT applications there will be only one conference held, both the applicant and the ATO officer will attend in person 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 will often use mediation techniques to assist to resolve the application.

2.1 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, is 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.

2.2 First Conference

The first, and usually only, conference will be held approximately 4 weeks after the application for review is lodged. At the conference there will be 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 will be explored.

If the application does not settle at the first conference, a hearing date will be set. The hearing date will be within 6 weeks of the first conference.

2.3 Second Conference

A second conference will only be 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 and/or special circumstances exist. Any second conference will take place within 4 weeks of the first conference.

A hearing date will be set after the first conference even if a second conference is to take place. The hearing date will be 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 will be vacated and the matter will proceed directly to hearing.

3. Mediation

If the application does not resolve at, or shortly after the first conference, a party may request that a mediation take place. The Tribunal may also recommend to the parties that a mediation take place. As mediation requires the consent of both parties, a mediation will only be listed if both parties consent. Any request for mediation should be made at, or within 2 weeks of, the first conference.

4. Hearing

4.1 Evidence at Hearing

In order 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) will adopt 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 will only be 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 would be required to lodge the statements with the Tribunal and give them to the other party 7 days prior to any hearing. The statement will be treated as the evidence of the witness and cross-examination will only be about the facts in dispute.

4.2 Telephone or Video Proceedings

At the discretion of the presiding member, part of any hearing may be conducted either by telephone or video link. A party seeking to have evidence taken in this manner should seek the other party's written consent before applying to the presiding member for an appropriate direction.

Where evidence is to be given either by telephone or video link, the party whose witness it is will make all necessary arrangements and provide the Registry with details of the proceedings, the witness, location, telephone numbers and the date, time and estimated duration.

The costs shall be borne by the party who calls the witness subject to the discretion of the presiding member to waive charges. If no specific direction as to waiver is obtained, application can be made to the Registrar or District Registrar to waive the charges where the party concerned meets the criteria set out in regulation 19(6) of the Administrative Appeals Tribunal Regulations.

Details of costs can be obtained from the Registry.

5. Other Matters

5.1 Adjournments

Adjournments will only be granted in exceptional circumstances.

5.2 Interpreters

Interpreters will be provided by the Tribunal. Parties must ensure that the Registry is advised in sufficient time for arrangements to be made. Interpreters will be accredited at the first professional level, Interpreter, with the National Authority for Accreditation of Translators and Interpreters (NAATI). Only in languages where no professional level interpreter is accredited will a Paraprofessional Interpreter be utilised.

6. Decisions

All Tribunal decisions will be delivered orally at the end of the hearing. Written reasons will only be provided if requested by one of the parties under section 43(2A) of the Administrative Appeals Tribunal Act 1975.

1 March 2000