Senate

Supplementary Explanatory Memorandum

(circulated by authority of the Minister representing the Treasurer, Senator the Hon. Dame Margaret Guilfoyle, D.B.E.)

Introductory Note

This supplementary memorandum explains changes that were made to the Bill as introduced into the House of Representatives and which relate to the secrecy provisions contained in section 16 of the Income Tax Assessment Act 1936.

By the Income Tax Assessment Amendment Bill (No. 2) 1982 amendments are proposed to section 16 so as to permit the disclosure of confidential taxation information to certain Royal Commissions, for use for the purposes of their enquiries. Under that Bill a Royal Commission would also be permitted to divulge confidential information that it had received from the Commissioner of Taxation to the Attorney-General if it appears from that information that a law of the Commonwealth may have been breached. Taxation information received by the Attorney- General in these circumstances could then be passed on to the Australian Federal Police where the Attorney-General considers it apropriate to do so.

The further amendments now proposed to be made to the secrecy provisions of the Income Tax Assessment Act are contained in clause 3 of the Income Tax Assessment Amendment Bill (No. 3) 1982. The purpose of the further amendments is to impose stricter limitations on the circumstances in which a Royal Commission will be permitted to divulge confidential taxation information to the Attorney-General. Specifically, a Royal Commission will not be permitted to divulge taxation information to the Attorney-General unless it is of the opinion that the information indicates that a person may have committed an offence against a Commonwealth Act which carries a penalty of 6 months or more imprisonment. More detailed explanations follow.