Save
Don’t get creative: Quirky defences in court a lesson for taxpayers
In recent months, Australian courts have heard creative excuses from taxpayers in trouble with the law, and it hasn’t done them any favours in getting out of penalties.
Don’t get creative: Quirky defences in court a lesson for taxpayers
In recent months, Australian courts have heard creative excuses from taxpayers in trouble with the law, and it hasn’t done them any favours in getting out of penalties.
Recently, the NSW Supreme Court has ordered John Lamont to pay $4.3 million to the Tax Office, comprising of primary tax, the Medicare levy, administrative penalties for tax shortfall, shortfall interest charge, penalty for a non-lodgement of a return, and general interest charge. The debts arose during the financial years of 2002 to 2013.
Mr Lamont, who was self-represented in the proceedings at all times, provided a five-page written submission to the court, which included biblical references in support of a proposition that the income tax legislation of the Commonwealth of Australia was ineffective because the relevant acts did not “refer to or define a man or a woman and hence, parliament did not pass statutes that apply to a man nor a woman”.
The submission also cited a 1796 decision of the Supreme Court of North Carolina to support an argument that the defendant is not bound by any laws or institutions except those to which he gives his consent.
“I no longer consent to the statutes in par 7 above apply to me, the living man,” Mr Lamont’s submission wrote.
Mr Lamont’s submission also included statements that he did not consent to “doing business with the plaintiff” or with the plaintiff’s legal representative and did not “consent to these proceedings”.
Justice Des Fagan said the defence was “frivolous and insubstantial” and dismissed them from consideration, ordering Mr Lamont to repay the tax debts and the ATO’s costs of the proceedings.
“In any event, the submissions are incoherent and I have been unable to divine from them anything meaningful,” said Justice Fagan in his judgment.
Further, earlier this month, a taxpayer from North Bendigo told the Bendigo Magistrates Court that he rejected having to lodge an income tax return because he was “a human being who waives my right to recognition as a person”.
Instead, magistrate Michael King found the man guilty of all six charges, noting that paying tax did not contravene human rights, and rubbishing Mr Polglaise’s arguments as “entirely lacking in merit”. He was fined $6,000 and ordered to lodge his outstanding tax returns.
“That would make a mockery of the law,” said Dr King. “This was persistent and blatant disregard of income tax law.”
You can find out more about what is on the Tax Office’s radar this year here.
RELATED ARTICLES
Tax saving
The downsizer dividend: How targeted tax levers could unlock housing supply in Australia
A call by Raine & Horne to incentivise seniors to move to smaller homes has kicked off a wider policy conversation that reaches well beyond real estate. If designed well, a targeted package could ...Read more
Tax saving
Raine & Horne's bold move could unlock housing supply but what are the hidden risks
Raine & Horne’s call for targeted tax incentives to encourage empty nesters to ‘rightsize’ isn’t just another sector wish list; it’s a potential lever to free up family homes, ease rental ...Read more
Tax saving
From annual check-ups to always‑on: how modern portfolio reviews unlock after‑tax alpha
The era of once‑a‑year portfolio check‑ins is over. Continuous, tech‑enabled reviews now drive returns through tax efficiency, risk control and behavioural discipline—especially in a high‑rate ...Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
Tax saving
The downsizer dividend: How targeted tax levers could unlock housing supply in Australia
A call by Raine & Horne to incentivise seniors to move to smaller homes has kicked off a wider policy conversation that reaches well beyond real estate. If designed well, a targeted package could ...Read more
Tax saving
Raine & Horne's bold move could unlock housing supply but what are the hidden risks
Raine & Horne’s call for targeted tax incentives to encourage empty nesters to ‘rightsize’ isn’t just another sector wish list; it’s a potential lever to free up family homes, ease rental ...Read more
Tax saving
From annual check-ups to always‑on: how modern portfolio reviews unlock after‑tax alpha
The era of once‑a‑year portfolio check‑ins is over. Continuous, tech‑enabled reviews now drive returns through tax efficiency, risk control and behavioural discipline—especially in a high‑rate ...Read more
Tax saving
Navigating tax laws for capital gains in 2023
The landscape of Australian tax laws surrounding capital gains is ever-changing, with 2023 being no exception. Read more
Tax saving
What you need to know about the tax implications of crypto
One million Aussies are now invested in crypto, but many have not thought about how these investments will affect them at tax time. Read more
Tax saving
Welfare overhaul could give recipients a leg-up
Australia’s Centrelink recipients who’ve been doing it tough are in for a potentially easier time if the federal government pursues ambitious reforms that could provide sturdier safety nets. Read more
Tax saving
Students should think twice before tapping into their super
Former students might want to think carefully before they look to take advantage of the federal government’s biggest first home buyer incentive. Read more
Tax saving
Advocates call for an end to tax cuts
Social services sector advocates have warned that further tax cuts may make solving Australia’s biggest challenges much harder. Read more
More articles
OUR PLATFORMS AND BRANDS
EVENTS AND SUMMITS
- ACE25 The Accounting Conference and Exhibition
- Australian Accounting Awards
- Australian AI Awards
- Australian Aviation Awards
- Australian Aviation Summit
- Australian Broking Awards
- Australian Cyber Awards
- Australian Cyber Summit
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Law Forum
- Australian Space Awards
- Australian Space Summit
- Better Business Awards
- Better Business Summit
- Broker Innovation Awards
- Broker Innovation Summit
- Budget Summit
- Corporate Counsel Summit
- Defence & National Security Workforce Awards
- Lawyers Weekly 30 Under 30 Awards
- Commerical Finance Awards
- New Broker Academy
- Partner of the Year Awards
- Partner Summit
- REB Awards
- Rising Star Awards
- SME Bootcamp
- Women in Finance Awards
- Women in Finance Summit
- Women in Law Awards
- Women in Law Forum
PODCASTS
- Accountants Daily Podcast Network
- Australian Aviation Podcast Network
- Broker Daily Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- REB Podcast Network
- Space Connect Podcast
- The Adviser Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- The Smart Property Investment Show
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
STAY CONNECTED
Make your nest egg grow. Register now for nestegg updates.