House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. Frank Crean, M.P.)

Introductory Note

The provisions of this Bill are designed to amend the appeals provisions of the Income Tax Assessment Act (the "Principal Act").

Under the Principal Act, a taxpayer is given certain rights of objection and appeal where he is dissatisfied with an assessment made under the Act. Where a taxpayer objects to an assessment and the Commissioner disallows that objection, the taxpayer has the right to have the decision referred to a Board of Review or to treat his objection as an appeal to either the High Court or the Supreme Court of a State.

The provisions also give a taxpayer or the Commissioner the right to appeal to the High Court from any decision of a Board of Review involving a question of law.

Broadly, the amendments proposed by this Bill will provide that income tax appeals now falling within the single justice jurisdiction of the High Court will come within the jurisdiction of the State Supreme Courts. Thus, a taxpayer dissatisfied with the Commissioner's decision on an objection will have the choice of taking the matter either to a Board of Review or to a Supreme Court of a State.

If the matter is referred to a Board of Review, a taxpayer or the Commissioner, if dissatisfied with a decision of the Board involving a question of law, will have the right of appeal to a single judge of a Supreme Court. There will also be a further right of appeal, subject to leave being granted by the High Court, to the Full High Court from a decision of a judge of the Supreme Court.

If a taxpayer decides to appeal to a Court instead of having the matter referred to a Board, the appeal will be to a single judge of a State Supreme Court. That Court may state a case in writing for the opinion of the High Court on any question of law. The Commissioner or a taxpayer may appeal to the Full High Court in its appellate jurisdiction from any order of the Supreme Court.