Notes for the Treasurer's Second Reading Speech.
This Bill will amend the Income Tax (International Agreements) Act, which contains the provisions governing the allowance of credits under the international agreements for the relief of double taxation between Australia and the United Kingdom, the United States of America and Canada.
A number of the provisions of this Act are concerned with the administrative procedures for the determination of the credits allowable, the rights of a dissatisfied taxpayer to appeal against a determination, the application of credits in payment of outstanding taxes and related matters. An associated Bill will insert provisions of this nature in the Income Tax and Social Services Contribution Assessment Act and, as the new provisions will govern the allowance of credits under the international agreements, as well as credits in respect of taxes payable in the Territory of Papua and New Guinea, the corresponding provisions in the Income Tax (International Agreements) Act will become redundant. It is accordingly proposed that these provisions be repealed.
A provision imposing an upper limit on the amount of credit that may be allowed under the international agreements is also to be amended in consequence of the introduction, in the Assessment Act, of a system of credits in respect of Territorial tax.
The only other amendment proposed by this Bill is a drafting adjustment, designed to clarify the operation of a section which lays down a formula for ascertaining the amount of Australian tax attributable to a dividend.
The amendments are explained in the memorandum that has been circulated for the information of Honourable Members, and it is thought to be unnecessary for me to discuss them further at this stage.
I commend the Bill to the Honourable Members.