House of Representatives

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Chapter 11 - Amendment of the Taxation Administration Act 1953

Outline of Chapter

11.1 This Chapter explains the consequential amendments to the TAA 1953 to be made by Schedule 1 to the Fuel Sales Grants (Consequential Amendments) Bill 2000.

11.2 The provisions of the TAA 1953 will ordinarily be attracted to the operation of grant and benefit schemes such as the fuel sales grants scheme because both the FSG Bill and the PGBA Bill provide for their general administration by the Commissioner.

Detailed explanation of amendments

General interest charge

11.3 Unpaid debts under a law administered by the Commissioner are subject to a GIC under Division 1 of Part IIA of the TAA 1953. The GIC will apply to outstanding amounts of scheme debts under the PGBA Bill.

11.4 A reference to the provision of the PGBA Bill that subjects scheme debts to GIC liability will be inserted in the table of Liability to the charge under other Acts in subsection 8AAB(5) of the TAA 1953. [Item 1, subsection 8AAB(5), new item 4A of the table]

Prosecutions and offences

11.5 The provisions in Part III of the TAA 1953 dealing with prosecutions and offences will ordinarily apply to grants and benefits schemes as a consequence of the PGBA Bill and entitlement Acts being within the meaning of'taxationlaw' in section 2 of the TAA 1953.

11.6 The definition of the term 'taxation statement', a term used in the description of certain offences for false or misleading statements, will be modified. The amended definition will exclude statements made in a document produced as a result of the exercise of the power proposed by section 42 of the PGBA Bill. That section confers a power to direct that information in the custody or control of a person be given to the Commissioner. [Item 2, new paragraph 8J(2)(mb)]

11.7 The provision that permits a court to order the payment of an amount in addition to a penalty relating to an offence against the Diesel and Alternative Fuel Grants Scheme Act 1999 will be amended so that it also applies if the offence is against the PGBA Bill or an entitlement Act. [Items 3 to 6, amendments to section 8W]

Collection and recovery

11.8 Standardised rules which enable the Commissioner to collect and recover liabilities that arise under the laws for which the Commissioner has the general administration and that are unpaid after they become due and payable are contained in Part 4-15 of Schedule 1 to the TAA 1953.

11.9 References will be inserted in the table of 'tax-related liabilities' to attract the operation of those standardised rules to debts arising under the PGBA Bill. [Item 7, subsection 250-10(2), new items 46 to 48 of the table]

Application

11.10 The Fuel Sales Grants (Consequential Amendments) Bill 2000 commences at the same time as the FSG Bill is enacted. The amendments to the TAA 1953 will take effect from that time.