Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Taxation Administration Act 1953
Summary of proposed amendments
Part III of the Taxation Administration Act 1953 contains offences and prosecution provisions which create a number of offences of general application to the various Commonwealth tax laws and makes provision for their prosecution. This Bill proposes technical amendments to extend the list of provisions of taxation laws contained in Part III of that Act to include references to the corresponding provisions in the Superannuation Guarantee (Administration) Bill 1992.
The Bill also proposes an amendment to Part IVC - Taxation Objections, Reviews and Appeals - to ensure that the existing arrangements for taxpayers to lodge appeals against, or applications for review of, objection decisions directly with the Federal Court or the Administrative Appeals Tribunal also apply to a person who has objected to an assessment under subclauses 50(3) or 50(5) of the Superannuation Guarantee (Administration) Bill 1992.
Explanation of proposed amendments
Broadly, Subdivision B of Division 2 of Part III of the Taxation Administration Act 1953 makes it an offence for a person to do certain acts, for example for a person to provide false or misleading statements to a taxation officer, to keep incorrect records, or to falsify or conceal the identity of another person from the Commissioner of Taxation.
Section 8J contains the definitions that are applicable to the provisions contained in Subdivision B. Existing subsection 8J(2) of the Taxation Administration Act sets out what is meant by the term "a statement made to a taxation officer" for the purposes of Subdivision B of Division 2 of Part III of the Taxation Administration Act. Excluded from that definition are statements made in documents produced pursuant to certain provisions of other Acts.
The proposed amendment will ensure that a statement made in a document produced pursuant to paragraph 71(1)(c) of the Superannuation Guarantee (Administration) Bill 1992 is also excluded from the definition of "a statement made to a taxation officer" for the purposes of Subdivision B. Documents which may be required to be produced under paragraph 71(1)(c) of the Superannuation Guarantee (Administration) Bill 1992 are documents in the custody or under the control of a person. The effect of the amendment is to ensure that a person cannot be prosecuted in respect of statements made in a document produced pursuant to paragraph 71(1)(c).
As a consequence of the amendments being made to the tax file number provisions in section 202 of the Income Tax Assessment Act, paragraphs 8WA(l)(b), 8WB(l)(d) and 8WB(l)(e) of the Taxation Administration Act are amended to included a reference to that new provision of section 202 (ie. new paragraph 202(f) which lists the facilitation of the administration of the superannuation guarantee charge as a further object of the tax file number legislation).
Section 8ZE provides that additional tax is not to be imposed in addition to the launching of a prosecution. The section provides that additional tax, duty or charge imposed under a "penalty tax provision" is not payable where a prosecution is instituted against the person for certain offences, such as failure to comply with a requirement of a taxation law, unless and until the prosecution action is withdrawn. A "penalty tax provision", for purposes of section 8ZE, is any one of the statutory provisions listed in subsection (3). These include section 222 (Penalty for failure to furnish return) and 223 (Penalty for false or misleading statements) of the Income Tax Assessment Act.
The definition of "penalty tax provision" in subsection 8ZE(3) will be amended to include a reference to sections 54 and 55 of the Superannuation Guarantee (Administration) Bill 1992. Broadly, sections 54 and 55 of the Superannuation Guarantee (Administration) Bill 1992 impose a liability for a penalty if the employer fails to provide, a superannuation guarantee statement by the due date or information for assessing the employer's liability to pay the charge, or if the employer makes a false or misleading statement (to a taxation officer or another person) which results in a reduced superannuation guarantee charge.
Taxation Objections, Reviews and Appeals
Clause 50 of the Superannuation Guarantee (Administration) Bill 1992 allows the Commissioner of Taxation to recover superannuation guarantee charge owing by a deceased employer where probate has not been granted. The Commissioner can effectively make a default assessment of the amount of superannuation guarantee charge up to the date of death. Where such an assessment is made the Commissioner must publish notice of the assessment in certain daily newspapers. A person who claims an interest, or subsequently has an interest in, the deceased estate of an employer may object against the assessment under subclauses 50(3) or 50(5) of the Superannuation Guarantee (Administration) Bill 1992.
The Bill will amend Part IVC (Taxation Objections, Reviews and Appeals) of the Taxation Administration Act 1953 to ensure that the definitions of "delayed administration (beneficiary) objection" and "delayed administration (trustee) objection" in section 14ZQ include a taxation objection made under subclauses 50(3) and 50(5) respectively of the Superannuation Guarantee (Administration) Bill 1992.
The effect of these amendments is that the arrangements for taxpayers to lodge appeals against, or applications for review of, objection decisions directly with the Federal Court or the Administrative Appeals Tribunal will also apply to a person who has objected to an assessment under subclauses 50(3) or 50(5) of the Superannuation Guarantee (Administration) Bill 1992.
Commencement date
The amendments to the Taxation Administration Act 1953 apply from 1 July 1992.