Issue
Whether the Commissioner will allow an objection against a decision not to grant an extension of time to register a TRBL?
Decision
The Commissioner will allow an objection against a decision to grant an extension of time to register a TRBL and will allow until 1 August 2001 for the registration.
Facts
Taxation Determination TD 97/7 set out in what circumstances the Commissioner would register a TRBL under regulation 53E of the Income Tax Regulations 1936 (ITR 1936) after the general extension date of 4 April 1997.
The taxpayer was not aware of the requirement to register a TRBL by 4 April 1997. He also regularly travelled overseas for periods of up to three months during the lodgment period.
In February 2000 the taxpayer requested an extension of time to register a TRBL. The request was denied as the reasons for not registering by the required date did not meet the criteria set out in Taxation Determination TD 97/7.
On 16 November 2000 the taxpayer objected to the decision.
Reasons for Decision
Regulation 53E of the ITR 1936 requires that a TRBL should be registered with the Commissioner: • not later than 31 December 1996; or • if in a particular case the Commissioner allows registration at a later date - by that date.
On 12 December 1996, the Commissioner allowed a general extension for eligible persons to register TRBLs by 4 April 1997. TD 97/7 provided guidelines for allowing the registration of a TRBL after 4 April 1997.
This determination was withdrawn on 9 May 2001 following the Administrative Appeals Tribunal (AAT) decision in Case AT 1999/49, [2001] AATA 220, to allow an extension of time to register a transitional RBL after the general extension date of 4 April 1997.
The AAT's decision regarding regulation 53E indicated that the time limit was only set for normal and orderly administrative purposes and the discretion to grant an extension is basically unfettered.
In view of the above, the Commissioner will allow an objection against a decision to grant an extension of time to register a transitional RBL.
Furthermore even though the taxpayer did not specify a particular date to which he wished the time for registration extended the Commissioner allowed until 1 August 2001 for the registration.