House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon. P.J. Keating, M.P.)

GENERAL OUTLINE

The Taxation Boards of Review (Transfer of Jurisdiction) Bill 1986 will amend 29 Commonwealth taxation and other laws in several respects. The Bill will :

Transfer of Taxation Boards of Review to Administrative Appeals Tribunal

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abolish the Taxation Boards of Review;

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transfer the jurisdiction presently exercised by the Taxation Boards of Review to the Administrative Appeals Tribunal (the Tribunal);

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create a Taxation Appeals Division of the Tribunal to review administrative decisions made under the various taxation laws administered by the Commissioner of Taxation;

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enable persons other than the taxpayer concerned to be made parties to a taxation proceeding before the Tribunal only with the consent of the taxpayer;

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provide for taxation review hearings by the Tribunal to be held in private unless otherwise requested by the person who requested the review;

Objections, reviews and appeals

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provide that an objection must be lodged with, and not merely posted to, the Commissioner within a 60 day time limit;

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allow the Commissioner, subject to review by the Tribunal, to extend the time limit for lodgment of an objection;

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make it clear that objection rights against an amended assessment are limited to matters connected with the particular item that has been amended;

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provide that, where an assessment of primary tax and one or more assessments of additional tax are incorporated on the same notice of assessment, the assessments are to be treated as one assessment for purposes of the objection and appeal provisions of the various taxation laws;

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abolish the $2.00 fee presently payable in relation to requests for reference and appeals and provide for the refund of the fee in respect of references and appeals on hand at the commencement of the amending Act;

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extend the time limit for lodgment of an objection, request for reference or appeal under the sales tax, estate duty, gift duty and pay-roll tax laws so that a uniform time limit of 60 days applies under all taxation laws;

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allow the Tribunal or a Supreme Court to extend the time for lodgment of a request for reference or an appeal under the various taxation laws;

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provide uniformly in all taxation laws that, where the Commissioner does not refer a request to the Tribunal or a Supreme Court within 60 days, the person who made the request may give notice to the Commissioner to do so within a further period of 60 days;

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authorise the Tribunal or a Supreme Court to permit a person to extend the grounds of objection in a review of, or an appeal against, the Commissioner's decision on the objection;

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provide that the Tribunal or a Supreme Court is reviewing the Commissioner's decision on an objection and is not itself empowered to alter an assessment or determination made by the Commissioner;

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as a corollary, require the Commissioner to take appropriate action, including where necessary amending an assessment, to give effect to a decision of the Tribunal or a court within 60 days after the decision has become final;

Broadening of sales tax objection rights

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bring the objection and appeal provisions of the sales tax law into line with the comparable income tax provisions by :

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providing taxpayers with a right to object to any assessment of an amount of tax (including as a result of a disputed classification of goods) or penalty tax payable;

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giving applicants for refunds of tax a right to object to decisions of the Commissioner on the refund application provided the application is lodged within 60 days after the applicant first became entitled to the refund;

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allowing objectors dissatisfied with the Commissioner's decision on their objections a choice of appealing to either the Tribunal or a specified Supreme Court;

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incorporating the right of review in respect of certain decisions relating to registration, securities and certificates presently available direct to the Tribunal within the general objection and appeal provisions;

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making, as with income tax, the production of a notice of assessment of sales tax conclusive evidence of the correctness of the assessment in an action for the recovery of the tax; and

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bringing other evidentiary provisions in the sales tax law into line with comparable provisions in other taxation laws;

Redundant Acts

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repeal the Export Incentive Grants Act 1971, the States Receipts Duties Administration Act 1970 and associated Acts that are no longer operative.