2. Judicial Review Advise Sarah on the potential for judicial review under the Administrative Decisions (Judicial Review) Act 1976 (Cth).

a. Identify, citing the legislation, the potential grounds of review that Sarah might rely upon in challenging the decision of the ATO to issue a debt; and

b. Explain, citing the relevant case law, why Sarah may have an argument under each ground of review identified, as well as the strength of that argument.

Sarah is seeking merits review of the decision by the ATO to impose a tax debt. She believes that the ATO miscalculated the debt for several reasons. First, she believes it incorrectly disallowed deductions for an overseas trip that combined a family holiday with attendance at a marketing conference and networking event. Second, Sarah works primarily from home but the ATO disallowed occupancy expenses because at the time she maintained a small office in Chatswood. However, Sarah was simply renting the office until the end of the lease, which was in August 2021. She could not keep the office due to the financial impact of Covid-19. The ATO did not have this information at the time it made its decision. Sarah also has concerns about the executive policy she uncovered through her FOI application, titled "Debt Collection in the ATO'. The policy gives the following direction to ATO assessors: Where a taxpayer combines a professional or academic conference with a personal trip, the conference must be of more than one day's duration. There is no such requirement in the legislation yet it is clear that the policy was relied upon in the ATO's decision to impose a tax debt on Sarah. Sarah thinks this is unfair. You lodge an application for merits review on behalf of Sarah at the Administrative Appeals Tribunal (AAT). Whilst that matter is awaiting hearing, you uncover more information about the original decision by the ATO. In the notification of the decision to impose the tax debt on Sarah, the decision- maker was listed as Toby Jacobs and underneath his signature were the words 'delegate to Diana Wang, Chief Assessment Officer . You are aware that chief assessment officers are the official delegates of the Tax Commissioner. Taken with the facts overall, you believe this matter warrants a separate judicial review application. In this case, there is no reason you cannot run a merits review and judicial review concurrently