Senate

Supplementary Explanatory Memorandum

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

Explanation of the proposed amendments

Time limit on Commissioner to make objection decision

The proposed amendment to Division 3 of Part IVC of the Taxation Administration Act 1953, being inserted by the Bill, will add a new section 14ZYA. This section will enable a person who has lodged a taxation objection, to give the Commissioner a notice requiring him to make a decision on the objection where the Commissioner has not made a decision by the later of;

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the end of the period of 60 days after the day on which the taxation objection was lodged with the Commissioner,

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the end of the period of 60 days after the day on which the Commissioner decides, under section 14ZX, to agree to accept an objection that was lodged out of time - if he so decides, or

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if the Commissioner has requested additional information in relation to the objection, in writing, within 60 days of the lodging of the objection, the end of the period of 60 days after he receives that information.

It is important to note that it is only at the expiration of the 'original 60 day period' that a person is entitled to issue a notice to the Commissioner. [Subsections 14ZYA(1) and 14ZYA(2)]

If the Commissioner has not made a decision on the objection within 60 days of receiving a notice under subsection 14ZYA(2), the Commissioner is deemed to have made a decision under subsection 14ZY(1) to disallow the objection. The Commissioner will then be required to serve a notice of the objection decision on the person under subsection 14ZY(3). [Subsection 14ZYA(3)]

Whether a person gives a notice to the Commissioner, after satisfaction of the necessary conditions in subsection 14ZYA(1), is a matter for the person to determine. The time limit and deemed disallowance provisions will only operate where a valid notice is given to the Commissioner.