House of Representatives

Explanatory Memorandum

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

Chapter 1 - Preliminary matters, amendment of existing Parts and introduction to new Part VI

Overview

1.1 This Chapter explains the introductory provisions to the GST Administration Bill and to new Part VI of the Taxation Administration Act 1953 . It also explains the amendments to existing Parts of the Taxation Administration Act 1953 to be made by the GST Administration Bill.

Summary of the legislation

1.2 The introductory provisions of the GST Administration Bill provide for the short title, commencement date, and the structuring of amendments to existing legislation. The Schedule to the GST Administration Bill contains amendments to the Taxation Administration Act 1953 .

1.3 Items 1 to 6 of the Schedule to the GST Administration Bill contain amendments to existing Parts of the Taxation Administration Act 1953 .

1.4 The GST Administration Bill will insert new Part VI in the Taxation Administration Act 1953 . [Schedule 1, item 7]

Division 1 of new Part VI contains rules about the interpretation of the provisions in that Part.

Explanation of the legislation

Preliminary matters

1.5 When the GST Administration Bill is enacted, it will be called the A New Tax System (Goods and Services Tax Administration) Act 1998 . [Section 1]

1.6 The provisions of the GST Administration Bill will apply from 1 July 2000, the same time as the provisions of the GST Act. [Section 2]

1.7 The GST Administration Bill will amend the Taxation Administration Act 1953 to insert collection and administration provisions specific to the goods and services tax (GST). [Section 3 and Schedule 1]

Amendment of existing Parts of the Taxation Administration Act 1953

1.8 The existing secrecy provision in Part IA of the Taxation Administration Act 1953 will be amended to exclude its operation in relation to new Part VI . Part VI will specifically provide for the confidentiality of GST information (see paragraph 8.21). [Schedule 1, item 1]

1.9 There are 4 amendments to Part III of the Taxation Administration Act 1953, which deals with prosecutions and offences. The first makes it clear that failure to comply with any of the requirements under a taxation law listed in subsection 8C(1) constitutes an offence. [Schedule 1, item 2]

1.10 The failure to apply for registration or to apply for cancellation of registration, when required to do so, will be listed in subsection 8C(1) among other offences for failure to comply with a requirement under a taxation law. [Schedule 1, item 3]

1.11 The definition of 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 to direct that information in the custody or control of a person be given to the Commissioner for GST purposes. [Schedule 1, item 4]

1.12 Another amendment will ensure that statements made in relation to tax invoices and adjustment notes will be within the scope of offences for making false or misleading statements to persons other than a taxation officer. [Schedule 1, item 5]

1.13 An amendment to Part IVC of the Taxation Administration Act 1953 (which deals with taxation objections, reviews and appeals) will define the period for objections to be made against assessments of GST (see Chapter 2 about assessments). Objections will need to be lodged with the Commissioner within 4 years after the end of the relevant tax period or 4 years after the importation of goods to which the assessment objected against relates, or within 60 days of service of the relevant assessment notice, whichever is the later. [Schedule 1, item 6]

Introduction to Part VI, Taxation Administration Act 1953

1.14 The administration provisions in new Part VI of the Taxation Administration Act 1953 are closely connected, and are therefore to be read, with the provisions of the GST Act and other relevant provisions of the Taxation Administration Act 1953 . [New section 19]

1.15 Terms used in Part VI will adopt the meaning of defined terms and other expressions used in the GST Act. [New subsection 20(2)]

The terms GST Act and authorised officer , which are used in Part VI, are also defined. [New subsection 20(1)]

1.16 The Criminal Code will apply to offences specified in Part VI. [New section 21]