Explanatory Memorandum
(Circulated by the authority of the Attorney-General, the Hon. R.J. Ellicott, Q.C., M.P.)Introductory Note
By this Bill it is proposed to amend provisions of the Income Tax Assessment Act 1936 (the "Principal Act") relating to the exercise of jurisdiction by Courts under that Act.
Under the Principal Act, a taxpayer dissatisfied with an income tax assessment is given rights of objection and appeal. Where a taxpayer lodges an objection to an assessment and the Commissioner disallows it, the taxpayer then has the right to have the decision referred to a Taxation Board of Review for review or have the objection treated as an appeal and forwarded to the Supreme Court of a State.
The provisions also give a taxpayer or the Commissioner the right to appeal to a single Justice of the Supreme Court of a State from any decision of a Board of Review involving a question of law. There is also provision for an appeal - by the taxpayer or the Commissioner - to the Full High Court from a decision of a single Justice in these circumstances. Such an appeal is dependent upon the High Court giving leave to appeal.
If a taxpayer decides to appeal to a Court instead of having the matter referred to a Board of Review, the appeal is heard by a single Justice of the Supreme Court of a State. In these circumstances, a taxpayer or the Commissioner may appeal as of right to the Full High Court from any order of the Supreme Court.
Although the High Court does not have original jurisdiction in taxation appeals, it does, along with the Supreme Courts of the States and Territories, have such jurisdiction in a "taxation prosecution", e.g., a prosecution for an offence such as failure to lodge a return.