How do I lodge an objection to a passenger service levy assessment?

When can an objection be made to an assessment if there has been a mistake in a return?

You can make an objection if a mistake was made on a return which resulted in a higher assessed liability than would have been assessed if the mistake had not been made. For example, if you accidentally put a higher number in the return, such as 750 instead of 650.

Unless the Commissioner is satisfied that there are special circumstances, an objection made because of a mistake made in the return must be lodged within 30 days of the date of the assessment. 

Some examples of special circumstances include:

• a serious illness or other personal emergency affecting the taxpayer or person or persons responsible for returns for the taxpayer,
• a failure of computing or other systems, including loss of data, affecting the taxpayer’s ability to make the objection, 
• an unforeseeable occurrence or circumstance outside the control of the taxpayer.

Evidence will need to be provided if making a claim of special circumstances outside the 30 day objection period.

When can an objection be made to an estimated assessment?

You can lodge an objection to an estimated assessment if the assessed liability was higher than if the assessment had been determined on the basis of the actual passenger service transactions for the assessment period.

EXAMPLE: If you are not registered or do not lodge a return for an assessment period, the Commissioner will use an estimate of the number of passenger service transactions to determine your liability for the levy. If the Commissioner’s assessment is, say, $8,000, and you can demonstrate that the actual liability for the assessment period is $7,000 because you have records of your passenger service transactions for the period, then you can lodge an objection to the original assessment, provided that you have registered as a taxpayer. You cannot, however, object to the Commissioner’s decision to use an estimated assessment in the first place.

Unless the Commissioner is satisfied that there are special circumstances, an objection made on an estimated assessment must be lodged within 30 days of the date of the assessment. 

Some examples of special circumstances include:

• a serious illness or other personal emergency affecting the taxpayer or person or persons responsible for returns for the taxpayer
• a failure of computing or other systems, including loss of data, affecting the taxpayer’s ability to make the objection
• an unforeseeable occurrence or circumstance outside the control of the taxpayer.

Evidence will need to be provided if making a claim of special circumstances outside the 30 day objection period.

Evidence to support an objection to an estimated assessment

• Records or other evidence that the number of passenger service transactions for the assessment period were lower than the estimate used for the assessment.

When can an objection be made to an assessment if a person has collected a levy amount and not paid it to the taxpayer (or otherwise agreed)?

You can lodge an objection to an assessment if a person has collected a levy amount and not paid it to you (or as otherwise agreed) if you have taken all reasonable steps to recover the amount, or to have the amount paid.

Unless the Commissioner is satisfied that there are special circumstances, an objection made because a person has collected a levy amount and not paid it to the taxpayer (or as otherwise agreed) must be lodged within 60 days of the date of the assessment. 

Some examples of special circumstances include:

• a serious illness or other personal emergency affecting the taxpayer or person or persons responsible for returns for the taxpayer
• a failure of computing or other systems, including loss of data, affecting the taxpayer’s ability to make the objection 
• an unforeseeable occurrence or circumstance outside the control of the taxpayer.

Evidence will need to be provided if making a claim of special circumstances outside the 60 day objection period.

Evidence to support an objection if a person who collected a levy amount but did not pay it to the taxpayer (or otherwise as agreed)

(i) Evidence that the person was in a position to collect a levy amount relating to the passenger service transactions for the assessment period on behalf of the taxpayer – for example if a driver, or an affiliate then:

• proof of identity for the person – for example a copy of their driver licence
• evidence that they are associated with the taxpayer, for example, documentation on the taxpayer’s letterhead which had been signed by the person acknowledging the association
• evidence that the person agreed to collect the levy amount on behalf of the taxpayer, and to pay it to the taxpayer (or as otherwise agreed). For example, a copy of a signed acknowledgement by the person of policies and procedures for collecting and paying levy amounts
• records or other evidence of passenger service transactions that they collected levy amounts for and should have passed on to the taxpayer (or as otherwise agreed)
• evidence that the person was associated with those passenger service transactions, such as evidence of them being logged into the taxpayer’s systems at the time the passenger service transactions took place

AND 

(ii) That the person collected the levy amount but did not pay the amount to the taxpayer

• evidence that they collected the levy amount, such as a copy of a tax invoice/receipt or records from a fare calculation device which contain
• evidence of the levy amount being collected by the person,
• evidence that the person did not pay the levy amount to the taxpayer,  or as otherwise agreed, (such as to an affiliated taxi service provider), for example a declaration by the taxpayer outlining the details of the circumstances

AND either (iii) OR (iv) below

(iii) The taxpayer took reasonable steps to recover the amount:

• evidence of written notice being given to the person that a levy amount is due or outstanding, for example reminder notices
• records of entering into (or attempting to enter into) payment arrangements for the repayment of outstanding levy amount,

(iv) The taxpayer took reasonable steps to have the amount paid, such as:

Evidence of attempting to recover through the bailment agreement or affiliated service provider or through having the person work off the debt
Evidence of attempting to deduct the outstanding amount from an account associated with the person

When can an objection be made to an assessment if the taxpayer has given a reasonable direction to a person and they have not collected a levy amount?

You can lodge an objection to an assessment if you have given reasonable directions to a person and they have not collected the levy amount if you have taken all reasonable steps to recover the amount, or to have the amount paid. However, an objection on this ground cannot be made more than once in relation to the same person.

Unless the Commissioner is satisfied that there are special circumstances, an objection made on these grounds must be made within 60 days of the date of the assessment. 

Some examples of special circumstances include:

• a serious illness or other personal emergency affecting the taxpayer or person or persons responsible for returns for the taxpayer
• a failure of computing or other systems, including loss of data, affecting the taxpayer’s ability to make the objection 
• an unforeseeable occurrence or circumstance outside the control of the taxpayer.

Evidence will need to be provided if making a claim of special circumstances outside the 60 day objection period.

Evidence to support an objection in the event that the taxpayer has given reasonable directions to a person and they have not collected a levy amount

(i) Evidence that the person was in a position to collect a levy amount relating to the passenger service transactions for the assessment period on behalf of the taxpayer – for example if a driver, or an affiliate then:

• proof of identity for the person – for example a copy of their driver licence,
• evidence that they are associated with the taxpayer, for example, documentation on the taxpayer’s letterhead which had been signed by the person acknowledging the association
• evidence that the person agreed to collect the levy amount on behalf of the taxpayer, and to pay it to the taxpayer (or as otherwise agreed). For example, a copy of a signed acknowledgement by the person of policies and procedures for collecting and paying levy amounts
• records or other evidence for passenger service transactions that they should have collect levy amounts for and passed on to the taxpayer
• evidence that the person was associated with those passenger service transactions, such as evidence of them being logged into the taxpayer’s systems at the time the passenger service transactions took place

AND

(ii) Evidence that the taxpayer gave the person a reasonable direction as to the collection of the levy amount

evidence that the person was given instruction on the process for reporting on, collecting and remitting levy amounts for passenger service transactions – this could include specific instructions on certain aspects of the process such as:

• Keeping certain records in relation to the number of trips
• Collecting an additional amount from passengers in respect of the levy
• That the levy be added to the total fare in a particular way (such as part of the flag-fall or to the total fare)
• That collected levy amounts must be remitted to a taxpayer (or as otherwise agreed) in a particular way or on a particular day

evidence that the person understood those instructions, such as evidence that they have completed training, or an acknowledgement that they needed to use the process and the implications of failing to follow the direction.

What might be considered reasonable when providing direction?

• How was the direction given? ​​​​​​
• Was it given in a clear and simple way?
• Was it given in writing?
• Was it reasonable?
• Did the taxpayer have policies and procedures in place outlining the obligations on drivers in regards to levy collection and remittance?
• Was training provided on the policies and procedures?
• Was the direction for a purpose directly related to the obligations of the taxpayer (i.e. counting or collecting the levy)?

AND​​​​​​

(iii) Evidence that the person did not collect a levy amount, such as a declaration by the taxpayer describing the circumstances, or financial records

AND (iv) OR (v) below

(iv) The taxpayer took reasonable steps to recover the amount:

• evidence of written notice being given to the person that a levy amount is due or outstanding, for example reminder notices
• records of entering into (or attempting to enter into) payment arrangements for the repayment of outstanding levy amount

(v)The taxpayer took reasonable steps to have the amount paid, such as:

• Evidence of attempting to recover through the bailment agreement or affiliated service provider or through having the person work off the debt
• Evidence of attempting to deduct the outstanding amount from an account associated with the person.

How to lodge an objection

Please note that before you can lodge an objection, you must be registered as a taxpayer with the Point to Point Transport Commissioner.

Log onto the Point to Point Transport Industry Portal and navigate to the Levy page to locate the Passenger Service Levy Objection to an Assessment form. The form can only be completed and submitted online. Read the Passenger Service Levy User Guide for assistance.

To complete the form you will be required to identify the specific notice of assessment and levy assessment period about which you are objecting and upload the evidence upon which you rely to support your objection.

Determination of an objection

Section 91 of the Taxation Administration Act 1996 requires the Commissioner to consider an objection and either allow the objection in whole or in part, or disallow the objection within 90 days after receipt, unless the determination is suspended to allow additional information to be provided.

Once a determination of your objection is made, you will receive notice of the determination which will include:

• the outcome of the determination
• ​​if disallowed or allowed in part only, the reasons for reaching this determination
• the findings on material questions of fact, referring to the evidence or other material on which the findings were based
• the Commissioner’s understanding of the applicable law
• the reasoning processes that led the Commissioner to the conclusions and determination
• information on your right to make an application for review the determination to the NSW Civil and Administrative Tribunal or the Supreme Court of NSW.

You also have a right to seek a review in the NSW Civil and Administrative Tribunal or the Supreme Court of NSW if the Commissioner has not determined your objection within 90 days of lodgement at any time after the end of that period.