Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello MP)Chapter 3 - Secrecy provisions
Outline of chapter
3.1 Schedule 3 to this Bill amends the Taxation Administration Act 1953 (TAA 1953) to allow disclosure of relevant information to the Corruption and Crime Commission of Western Australia.
Context of amendments
3.2 Section 3E of the TAA 1953 provides that the Commissioner of Taxation (Commissioner) may disclose information acquired by the Commissioner under the tax laws to an authorised law enforcement agency officer, or to an authorised Royal Commission officer, if the Commissioner is satisfied that the information is relevant to:
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- establishing whether a serious offence has been, or is being, committed or
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- the making, or proposed or possible making, of a proceeds of crime order.
3.3 Subsection 2(1) of the TAA 1953 includes an exhaustive definition of 'law enforcement agency' and includes state and national bodies responsible for crime and corruption investigation. The Corruption and Crime Commission of Western Australia which was established by the Corruption and Crime Commission Act 2003 (WA), replaces the Anti-Corruption Commission in Western Australia and the Royal Commission relating to the conduct of Western Australian Police Officers. The Corruption and Crime Commission of Western Australia has all the powers that the Anti-Corruption Commission had, as well as the powers of the Police Royal Commission. The Police Royal Commission was an 'eligible Royal Commission' under the definition of 'authorised Royal Commission officer' for the purposes of section 3E of the TAA 1953. As the new Corruption and Crime Commission of Western Australia is not an 'eligible Royal Commission', an amendment to the tax law would be required to enable the use of relevant taxation information by the new Commission.
3.4 The amendments insert the new Corruption and Crime Commission of Western Australia into the definitions of 'law enforcement agency' and 'head' under subsection 2(1) of the TAA 1953, to enable the Commissioner to disclose relevant taxation information to the Corruption and Crime Commission of Western Australia, if the Commissioner is satisfied that the information is relevant for the purposes outlined in section 3E of the TAA 1953.
Summary of new law
3.5 The amendments to the TAA 1953 include the Corruption and Crime Commission of Western Australia within the definitions of 'law enforcement agency' and 'head' to enable the Commissioner to disclose relevant taxation information to the Corruption and Crime Commission of Western Australia.
Detailed explanation of new law
3.6 Schedule 3 will amend the TAA 1953 by:
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- inserting, under the definition of 'law enforcement agency' in subsection 2(1), 'the Corruption and Crime Commission of Western Australia' [Schedule 3, item 4] and
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- inserting, under the definition of 'head' in subsection 2(1), 'in the case of the Corruption and Crime Commission of Western Australia - the Commissioner for that Commission' [Schedule 3, item 3].
3.7 Section 3E of the TAA 1953 provides that the Commissioner may disclose information acquired by the Commissioner under the tax laws to an 'authorised law enforcement agency officer'. An authorised law enforcement agency officer is defined in subsection 2(1) of the TAA 1953 as the head of a 'law enforcement agency' or an officer authorised in writing by this head to perform the functions of an authorised law enforcement agency officer under the TAA 1953.
3.8 The primary role of the Corruption and Crime Commission of Western Australia is to report and investigate misconduct by Western Australian public officers and public sector agencies.
3.9 Subsection 2(1) of the TAA 1953 would be amended to include the Corruption and Crime Commission of Western Australia in the definitions of 'law enforcement agency' and 'head'. This would enable the Commissioner to disclose taxation information, under section 3E of the TAA 1953, to the Commissioner of the Corruption and Crime Commission of Western Australia (or an authorised officer) to assist with investigations into misconduct by public officers which may involve serious offences or the making of a proceeds of crime order.
Application and transitional provisions
3.10 The amendments will commence on Royal Assent and apply to communications or disclosures of information from the day after Royal Assent (regardless of whether the information was acquired before or after that commencement). [Schedule 3, item 5]
3.11 This will ensure that the amendments do not have any retrospective application.