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The sole trader in a win-win state for Jobkeeper test case

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The AAT has overturned the decision from the Australian Taxation Office to deny a sole trader access for Jobkeeper after the Administrative Appeals Tribunal traced down that its backdated ABN registration has satisfied the integrity rules set within the norms. In December 2020, the Administrative Appeals Tribunal ruled out te sole trader Jeremy Apted was entitles to the JobKeeper program despite not keeping and holding an active ABN before 12 March 2020. This was under an integrity rule contained in the $90 billion wages subsidiary scheme. According to Accounts NextGen sources Mr. Apted, is a known specialist retail valuer and held an ABN since back in 2012 but later canceled his registration in mid-2018 as he was about to retire.

On the contrary, the retirement did not work for Mr. Apted and he resumed providing valuation services in Sept 2019. However, he failed to reactivate his ABN because he has assumed that he only required one if he was in need of a bed registered for GST. On 31 March 2020, Mr. Apted applied online to have his ABN reinstated along with the registrar and eventually backdating the reactivation on 1 July 2019. This was happening after requesting further information on his business history. It is important to acknowledge that after satisfying all the other eligibility requirements. Mr. Apted applied for the Jobkeeper but which was later denied by the Commissioner of Taxation on the basis that at the same point of time on 12 March 2020, Mr. Apted was left with no active ABN.

Assuming the Registrar did not perform his tasks and duties

If we look back and review the first JobKeeper test case the Administrative Appeals Tribunal’s president Justice David Thomas along with Deputy president Bernard McCabe has found that the Australian Business registrar had been satisfied with the historical information of Mr. Apted and appropriately adjusted the date of registration effect to 1 July 2019 that is effectively making Mr. Apted eligible for the JobKeeper.

As per Justice Thomas, an Mr. McCabe, The Australian Business Number act explicitly authorizes the Registrar to consider a date of the effect that predates the registration application where he is very much satisfied and assumes it is very much appropriate to process the same. However, Accounts NextGen explains that the commissioner is worried about the business that was not genuinely active and might get into the violated rules and anybody can access the benefits under the Rules. These Rules are belatedly applied for an ABN and hence convincing the registrar to make amendments in the Australian Business number and convince the Registrar to change the dates of effect on the dates prior to 12 March 2020.

Further discussions on the topic

It is assumed that the Registrar does not do his task and duties according to the requirements and then satisfy himself with very matters the treasurer considered. It is further understood by Accounts NextGen that there is no evidence provided at the hearing to suggest the Australian Business number registration process lacks integrity or not. In such circumstances, the authorities are satisfied with it assumed as an approach that operates according to their respective terms.

The take by Administrative Appeals Tribunal 

The Tribunal stated that the taxpayers are in similar circumstances as Mr. Apted, and as a result, he should engage with the established Australian Business Number registration process, with any of its have a pre 12 March 2020 date of the effect that satisfying the integrity rule that exists within the JobKeeper program. Accounts NextGen further noted that the senior tax controversy partner who led the case on behalf of Mr. Apted, appeals and explains that the decision would be welcomed by the small businesses that are locked out because of the 12 March 2020 integrity rule.

This year was seen to be a difficult year to survive and it’s been disappointing to see all the small businesses dissolving and the owners facing the word economic shift which is affecting them adversely. This requires access that requires support for simply not meeting an arbitrary deadline. In the scheme of foreseeing the Jobkeeper and the other measures have cost and affected this country, these are an important fact to understand that the small businesses claims are costing nothing. However, in view of such businesses and people, this is everything they mean.

In a conclusive viewpoint:

According to the Tribunal, their judgment was about the Jobkeeper scheme to provide the support for an active business that is facing pandemic-related challenged to survive. This decision will be an act that will support the small businesses a vital boost to step in this new year with a fresh start. It is hence understood that the Australian Taxation Office is currently considering the decision of the Tribunal along with its implications that include whether to appeal or not. Furthermore, the information is set to base and structure in the forthcoming weeks.

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