Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 8 - Amendments to other Commonwealth Acts
Outline of Chapter
8.1 This Chapter explains the amendments made to a number of other Acts that are consequent to the introduction of the indirect tax laws goods and services tax, wine equalisation tax and luxury car tax. Theamendments are contained in Schedule 8 .
Context of Reform
8.2 The new indirect tax laws will operate within the framework of existing laws. These laws need to be amended to include references to the indirect tax laws.
Summary of the amendments
8.3 The following Commonwealth Acts will be amended to include references to the new indirect tax laws:
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- Administrative Decisions (Judicial Review) Act 1977 (AD(JR)A 1977);
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- Crimes (Taxation Offences) Act 1980 (C(TO)A 1980);
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- Freedom of Information Act 1982 (FOIA 1982); and
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- Taxation (Interest on Overpayments and Early Payments) Act 1983 (T(IOEP)A 1983).
8.4 The amendments will apply immediately after the commencement of the A New Tax System (Goods and Services Tax) Act 1999 , that is, from 1 July 2000. [Subclause 2(17)]
Detailed explanation of the amendments
Administrative Decisions (Judicial Review) Act 1977
8.5 The AD(JR)A 1977provides for the review in the Federal Court of an administrative decision to which that Act applies, and of conduct in the course of making a decision to which that Act applies. Schedule 1 to that Act lists classes of decisions to which that Act does not apply.
8.6 Among the classes of decision listed in Schedule 1 are the making of assessments, decisions forming part of the process of making of assessments and decisions on objections in relation to various taxing Acts. Theindirect tax laws provide for administrative review of such decisions.
8.7 References to the indirect tax laws, including Part VI of the Taxation Administration Act 1953 (TAA 1953), will be inserted in Schedule 1 of the AD(JR)A 1977. This will exclude from judicial review, under the AD(JR)A 1977, decisions made under the indirect tax laws that fall within the classes referred to in Schedule 1. [Items 1 and 2]
Crimes (Taxation Offences) Act 1980
8.8 The C(TO)A 1980 provides for criminal sanctions against persons who engage in arrangements or transactions designed to ensure that a company or trust is rendered incapable of paying taxes for which it is liable.
8.9 The C(TO)A 1980 will be amended to insert new Parts which will apply the existing provisions relating to sales tax evasion to offences committed under the new indirect tax laws. [Items 3 to 14]
Freedom of Information Act 1982
8.10 Access can be denied to a document that is an exempt document for the purposes of the FOIA 1982. A document is an exempt document under section 38 of that Act if its disclosure is prohibited under a provision of an enactment. That prohibition applies to the secrecy provisions of various Acts listed in Schedule 3 of that Act.
8.11 However, a person may access documents under the control of the Commissioner of Taxation (Commissioner) if they contain information about their personal tax liability.
8.12 Schedule 3 will be amended to include a reference to section 68 of the TAA 1953(about protecting the confidentiality of information) [item15] . A document containing information to which that provision applies will be an exempt document unless it contains information about a persons own indirect tax liability.
Taxation (Interest on Overpayments and Early Payments) Act 1983
8.13 TheT(IOEP)A 1983 provides for the payment of interest by the Commissioner on certain overpayments or early payments of tax.
8.14 Part III of the T(IOEP)A 1983 provides for the payment of interest to a taxpayer on an amount of relevant tax, which is overpaid as a result of a decision to which this Act applies. This would occur as a result of a successful objection or appeal against, or review of, an assessment, and the tax is refunded or applied against another tax liability.
8.15 The definition of relevant tax will be amended to include references to an indirect tax, or a penalty, or a charge under an indirect tax law [item 26] . This will ensure that interest will be paid on any overpaid tax that is refunded or applied against another tax liability as a result of an objection against an assessment of indirect tax.