House of Representatives
Taxation Laws Amendment Bill 1984
Taxation Laws Amendment Act 1984
Explanatory Memorandum Part B
(Circulated by authority of the Minister Assisting the Treasurer, The Hon. Chris Hurford MP)NOTES ON SCHEDULES 1-16
The sixteen Schedules to this Bill will make further amendments of the various Acts that are being amended by other provisions of the Bill. Schedules 1 & 3, 4, 5 & 6 and 8 to 16, effect further amendments relating to offences, while Schedules 2 and 7 make amendments of a formal kind.
The amendments being made by the Schedules fall into six separate categories. For purposes of reference, the broad effect of each category (denoted by the letters A, B, C, D, E and F) is explained in the columns below. The explanations in each Schedule of the various amendments are then explained by reference to the appropriate letter.
| CATEGORY | EFFECT OF EXISTING PROVISION | EFFECT OF AMENDMENT |
|---|---|---|
| A | Imposes an obligation to comply with a requirement, or imposes a monetary penalty or a period of imprisonment, or both, for a breach of a taxation law. | Imposes a monetary penalty, or increases the monetary penalty or the term of imprisonment, or both. |
| B | Imposes a monetary penalty for a breach of the law. | Imposes a monetary penalty for each day on which a specified breach of a law continues. (e.g. failure to register as a group employer). |
| C | Imposes a monetary penalty for failure to comply with a notice to pay to the Commissioner an amount of tax owed by a person. | Increases the monetary penalty tenfold; may empower a court to order payment of an amount equal to the amount shown in the notice to the Commissioner. |
| D | Imposes a monetary penalty or period of imprisonment, and authorises prosecution action. | Omits existing provision by virtue of the more comprehensive offences, being inserted in Part III (Prosecutions and Offences) of the Taxation Administration Act 1953 by clause 297, which makes the existing provision redundant. |
| E | Amendments of a drafting nature, or consequential on the insertion of Part III (Prosecutions and Offences) of the Taxation Administration Act 1953 by clause 297. | |
| F | Formal amendments of the Australian Capital Territory (Administration) Act 1969 and the Income Tax Assessment Act 1936 to effect drafting improvements and alter references as a result of changes to the machinery of Government. |
SCHEDULE 1 FURTHER AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY (ADMINISTRATION) ACT 1969
| SECTION | CATEGORY OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 7(1) | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 8(2) | A | Penalty for forging tax stamps or dies. |
| 10 | D | Deliberate avoidance of stamp duty |
| 12(1) | A | Penalty for fraudulently defacing or removing tax stamps. |
| 14(1) | A | Penalty for failure to cancel stamp after being affixed or spoilt. |
| 14(3) | A | Penalty for fraudulently removing writing on stamps. |
| 14 | A | Penalty for failure to cancel a stamped negotiable instrument. |
| 17(4) | A | Penalty for impressing a stamp or printing on an instrument without authority. |
| 19 | A | Penalty for failure by a banker to maintain control over stamps. |
| 22 | A | Penalty for the unauthorised issue of cheque forms by unauthorised bankers. |
| 23 | A | Penalty for unauthorised use of cheque forms to denote payment of tax. |
| 24 | D | Penalty for failure by a banker to furnish returns and pay tax. |
| 28 | D | Penalty for failure to duly stamp a bill or note. |
| 29(1) | A | Penalty for presenting for payment a bill or note not duly stamped. |
| 32(1) | D | Penalty for failure by a registered owner to furnish return and pay tax on hire-purchase agreements. |
| 33(1) | A | Penalty for failure by a registered owner to endorse hire-purchase agreements. |
| 36 | D | Penalty for failure by an owner to stamp hire purchase agreements. |
| 39(1) | B | Penalty for failure by an insurer to register. |
| 42(1) | D | Penalty for failure by an insurer to lodge monthly returns. |
| 44B(1) | B | Penalty for failure by a life insurer to register. |
| 44E(1) | D | Penalty for failure by a life insurer to lodge returns and pay tax. |
| 47(1) | D | Penalty for failure to lodge an instrument of transfer for assessment. |
| 47(2) | D | Penalty for failure by a lessee to have dutiable lease stamped. |
| 47(3) | D | Penalty for failure by a lessee to have dutiable lease lodged with Commissioner for assessment. |
| 47(4) | D | Penalty for failure by a transferee to lodge transfer of lease for assessment. |
| 47(5) | D | Penalty for failure by a lessee to lodge agreement to transfer lease for assessment. |
| 47(6) | D | Penalty for failure to duly stamp a transfer of a non-Crown lease for less than $500. |
| 47(7) | D | Penalty for failure to duly stamp an agreement to transfer a non-Crown lease for less than $500. |
| 51 | A | Penalty for failure by a broker to retain record of transfer of marketable securities. |
| 52 | A | Penalty for failure by a broker to make statement about dutiable transfers of marketable securities. |
| 53(1) | D | Penalty for failure by a broker to lodge monthly return and pay tax on transfers of marketable securities. |
| 56 | D | Penalty for failure by the transferee of marketable security to lodge instrument of transfer for assessment or cause the instrument to be duly stamped. |
| 62 | D | Penalty for refusal or failure to comply with a requirement to provide information for the purpose of making an assessment. |
| 63 | D | Penalty for furnishing a false or misleading return. |
| 64 | D | A person is not excused from furnishing information on the ground of self-incrimination. |
| 65 | D | Rules for the enforcement of Court orders to pay penalties imposed under sections 62 and 63. |
| 84(2) | C | Requirement (garnishee) to pay duty or tax by a person indebted to a person liable to the duty or tax. |
| Part VII | D | Prosecution for offences under the Act. |
| 93 | D | A separate offence is committed each day a person fails to comply with a requirement under the Act. |
| 96(1) | A | Penalty for failure to keep accounts and records. |
| 96(1)(a) | E | Penalty for failure to keep accounts and records. |
| 97(3) | D | Penalty for hindering an officer exercising powers under the Act. |
| 99(d) | A | Governor-General may make regulations prescribing penalties up to $100 for offences against the regulations. |
SCHEDULE 2 FORMAL AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969
| SECTION | CATEGORY OF AMENDMENT | EXPLANATION OF AMENDMENTS |
|---|---|---|
| Various | F | Formal Amendments. |
SCHEDULE 3 FURTHER AMENDMENTS OF THE BANK ACCOUNT DEBITS TAX ADMINISTRATION ACT 1982
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 7(2) | E | Penalty for failure by officers to observe secrecy in the performance of their duties under the Principal Act. |
| 11(4) | E | Penalty for failure to notify the Commissioner where an eligible debit is made or is expected to be made to an exempt account. |
| 12(1) | D | Penalty for failure by bank to furnish Commissioner with return if eligible debit made during any month. |
| 12(5) | D | Penalty for failure to furnish return when required to do so. |
| Part VII | D | Penal provisions. |
| Part VIII | D | Prosecutions. |
| 56 | D | Penalty for failure by bank to furnish annual return in relation to exempt accounts. |
| 57(1) | B & E | Penalty for failure by bank to appoint representative officer. |
| 57(2) | B & E | Penalty for failure by Bank to notify Commissioner of appointment or termination of appointment of representative officer. |
| 62(c) | E | Governor-General may make regulations prescribing penalties up to $500 for offences against the regulations. |
SCHEDULE 4 FURTHER AMENDMENT OF THE ESTATE DUTY ASSESSMENT ACT 1914 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISION |
|---|---|---|
| 50 | E | Governor-General may make regulations necessary to give effect to the Principal Act. |
SCHEDULE 5 FURTHER AMENDMENTS OF THE GIFT DUTY ASSESSMENT ACT 1941 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 10 | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 47(b) | A & E | Governor-General may make regulations prescribing penalties not less than $2 or more than $40 for any breach of the regulations. |
SCHEDULE 6 FURTHER AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 16 | A | Penalty for failure by officers to observe secrecy in the performance of their duties under the Principal Act. |
| 82T(2) | D | Penalty for making a false statement in share valuation for convertible notes. |
| 128A(4) | E | Contains references to sections in which "tax" includes withholding tax on dividends and interest paid to non-residents. |
| 128U(2) | E | Contains references to sections in which "tax" includes mining withholding tax. |
| 136A(7) | A | Penalty for payment to non-resident of film or video royalties without Commissioner's approval. |
| 165(1) | A | Requirement for tax agent to attach agents certificate to return. |
| 213(2) | A & E | Penalty for failure by person setting up temporary business to give the Commissioner security for income tax. |
| 215(4) | E | Penalty for failure by liquidator to comply with certain requirements. |
| 215(4)(b) | A | Penalty for failure by liquidator to comply with certain requirements. |
| 218(2) | A,C & E | Penalty for failure to comply with garnishee notice. |
| 221C(1A) | A & C | Penalty for failure to deduct tax instalment deductions. |
| 221D | A | Penalty for failure to comply with tax instalment deduction variation. |
| 221E(3) | A | Penalty for failure by employee to return cancelled certificate of exemption from requirement that employer make tax instalment deductions. |
| 221E | A | Penalty for altering a certificate of exemption. |
| 221F(7) | E | Commissioner may vary requirements in relation to group employers. |
| 221F | A & B | Penalty for failure to comply with requirements as group employer. |
| 221G(5) & (6) | A & E | Penalty for any breach of requirements by tax stamp employer. |
| 221L | A | Penalty for losing or destroying tax stamps or group certificates. |
| 221M(1) | A | Penalty for failure to deliver instalment documents when requested. |
| 221S(2) | A | Penalty for failure to authorise foreign governments to deduct tax instalment deductions. |
| 221T(2) | A | Penalty for selling tax stamps without authorisation. |
| 221T(3) | A & E | Penalty for unauthorised disposal or purchase of tax stamps. |
| 221V(e) | E | Uttering fraudulently obtained tax stamps. |
| 221V(f) | E | Fraudulently presenting group certificate or tax stamps sheet. |
| 221V(g) | D | Making a false or misleading instalment deduction. |
| 221V | A | Penalty for various breaches of the P.A.Y.E. system. |
| 221Y(1) | A | Penalty for forging tax stamps or dies. |
| 221YAA | E | Prosecutions for offences by group employers. |
| 221YHD(3) | E | Eligible paying authority to collect and remit to Commissioner deductions for prescribed payments. |
| 221YHD(3)(b) | A | Refusal or failure by eligible paying authority to collect and remit to Commissioner deductions for prescribed payments. |
| 221YHN(2) | E | Applies the averment provision of the Principal Act in recovery actions under prescribed payments. |
| 221YHN(3) | E | Applicability of the provision in the Principal Act dealing with enforcement of court orders in recovery proceedings. |
| 221YHR(4) | E | Failure by eligible paying authority to forward exemption declaration to Commissioner and keep a copy. |
| 221YHV | E | Prosecutions for prescribed payments offences may be commenced at any time. |
| 221YL(4A) | A & C | Penalty for failure to deduct withholding tax from dividends and interest. |
| 221YN(2) | A & E | Penalty for failure to remit withholding tax deducted from dividends and interest. |
| 221YN(3) | A & E | Penalty for failure to forward withholding tax statement for dividends and interest. |
| 221YP(4) | A & E | Penalty for failure to remit amount to Commissioner for non-money dividends. |
| 221YQ(1) | E | Liability for failure to make deduction from dividend and interest. |
| 221YR(2) | E | Averment provision in the Principal Act to apply in recovery proceedings for dividend and interest withholding tax. |
| 221YR(3) | E | Applicability of the provision in the Principal Act dealing with enforcement of court orders for payment to the Commissioner. |
| 221YX | E | Dividend and interest withholding tax prosecution may be commenced at any time. |
| 221ZB(2) | A & E | Penalty for not making deduction from mining payments. |
| 221ZB | C | Requirement for person to make deduction from mining payment. |
| 221ZC(2) | A & E | Penalty for failure to remit mining withholding tax. |
| 221ZC(3) | A & E | Penalty for failure to forward statement to Commissioner of deductions for mining withholding tax. |
| 221ZE(2) | E | Averment provision in the Principal Act to apply in recovery proceedings by Commissioner for mining withholding tax. |
| 221ZE(3) | E | Applicability of the provision in the Principal Act dealing with enforcement of court orders for payment of mining withholding tax. |
| 221ZK | E | Prosecution for mining withholding tax offences may be commenced at any time. |
| 221ZN(5) | E | Penalty for offences against requirements connected with deductions from withdrawals from Australian film industry trust fund accounts. |
| 221ZN(5)(a) | A & E | Penalty for failure to remit deductions from withdrawals from film accounts. |
| 221ZN(5)(b) | A | Penalty for failure to comply with other requirements in relation to withdrawals from film accounts. |
| 221ZR(2) | E | Averment provision to apply in recovery proceedings by Commissioner for amounts connected with film accounts. |
| 221ZR(3) | E | Applicability of the provision in the Principal Act dealing with enforcement of court orders for payment of deductions in relation to film accounts. |
| 221ZW | E | Prosecutions for film account offences may be commenced at any time. |
| 251J(10) | A | Penalty for failure to advise of change in constitution of tax agent's partnership or company. |
| 251K(2A)(b) | E | Cancellation of registration where tax agent's failure to notify Tax Agent's Board of registration within 7 days. |
| 251K(7) | A | Penalty for failure by tax agent to notify Board of bankruptcy or permanently ceasing to carry on business. |
| 251K(8) | A & E | Penalty for failure by tax agent's partnership or company to notify Board of bankruptcy or permanently ceasing to carry on business. |
| 251L(1) | A | Penalty for unregistered tax agents charging fees. |
| 251N(1) | A | Penalty for preparing of returns on behalf of registered tax agents - individuals. |
| 251N(2) | A | Penalty for preparing returns on behalf of registered tax agents - partnerships and companies. |
| 251O | A | Penalty for advertising by unregistered tax agent. |
| 251P | E | Requirement for tax agent to prove absence of knowledge in partnership offences. |
| 252A(1) | B | Penalty for failure by non-resident trust to appoint public officer. |
| 252A(13) | E | Non-appointment of public officer of trust estate shall not excuse trustee from penalties for failure to comply with the Principal Act. |
| 262A(1) | A & E | Penalty for failure by taxpayer carrying on business to keep records. |
| 266(1) | E | Governor-General may make regulations prescribing penalties not less than $2 or more than $40 for offences against the regulations. |
SCHEDULE 7 FORMAL AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936
| SECTION | CATEGORY OF AMENDMENT | EXPLANATION OF AMENDMENTS |
|---|---|---|
| Various | E | Formal Amendments. |
SCHEDULE 8 FURTHER AMENDMENTS OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 8(2) | A | Penalty for failure by officers to observe secrecy in the performance of their duties under the Principal Act. |
| 30(4) | E | Penalty for failure by company liquidator to comply with requirements in relation to Commissioner. |
| 30(4)(b) | A | Penalty for failure by company liquidator to comply with requirements in relation to Commissioner. |
| 36(1) | A & C | Commissioner may by notice in writing require payment (garnishee) of tax from person owing money to employer. |
| 64(3) | B & E | Penalty for non-appointment of public officer. |
| 64(6) | E | Non-appointment of public officer does not excuse company from complying with Principal Act or regulations. |
| 64 | E | Non-appointment of public officer. |
| 67(1) | A & E | Penalty for failure by person registered or required to be registered as an employer under this Act to keep records and accounts. |
| 70(1)(b) | E | Governor-General may make regulations prescribing penalties up to $40 for offences against the regulations. |
SCHEDULE 9 FURTHER AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (NO.1) 1930 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 10(2) | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 10(3) | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 12 | A | Penalty for wrongfully quoting certificate of registration. |
| 13 | B & E | Penalty for failure to register by person carrying on business as manufacturer or wholesale merchant. |
| 14 | A & E | Penalty for failure to observe registration conditions by manufacturer or wholesale merchant. |
| 15 | A | Penalty for misrepresenting registration or falsely quoting certificate. |
| 32(2E) | E | Penalty for failure by liquidator to give notice to Commissioner of liquidation or failing to pay tax. |
| 32(2E)(b) | A | Penalty for failure by liquidator to give notice to Commissioner of liquidation or failing to pay tax. |
| 38(2) | A, C & E | Requirement (garnishee) to pay tax by a person indebted to a person liable to the tax. |
| 70C(1) | A | Penalty for wholesaler who does not specify tax on invoice of sale to retailer. |
| 70D(1) | A | Penalty for person who demands more money as sales tax than is liable or demands sales tax on false pretences. |
| 70D | A | Penalty for person who demands more money as sales tax than is liable or demands sales tax on false pretences. |
| 70E(1) | A & E | Penalty for breach of requirement that manufacturer or wholesale merchant shall keep books of account. |
| 73(b) | E | Governor-General may make regulations prescribing penalties not less than $2 nor more than $40. |
SCHEDULE 10 FURTHER AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (NO.5) 1930 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 8 | A & E | Penalty for failure to lodge entry or furnish prescribed information when goods imported. |
SCHEDULE 11 FURTHER AMENDMENTS OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 7 | E | Governor-General may make regulations prescribing penalties not less than $2 or more than $40. |
SCHEDULE 12 AMENDMENTS OF THE SALES TAX PROCEDURE ACT 1934 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 7 | D | Penalty for failure to lodge returns, or give Commissioner information, or attend to give evidence, or produce books etc. |
| 9 | D | Penalty for making a false declaration under the Principal Act or regulations. |
| 11 | D | Penalty for deliberate avoidance of sales tax. |
| 12 | E | The prosecution provisions of the Sales Tax Assessment Act (No.1) 1930 apply in relation to offences under the Principal Act. |
| 13(d) | E | Governor-General may make regulations prescribing times within which prosecutions may be commenced. |
| 13(i) | E | Governor-General may make regulations prescribing penalties for any breach of the regulations. |
SCHEDULE 13 FURTHER AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISION |
|---|---|---|
| 18(b) | E | Governor-General may make regulations prescribing penalties up to $250 for offences against the regulations. |
SCHEDULE 14 FURTHER AMENDMENT OF THE TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISION |
|---|---|---|
| 24 | E | Governor-General may make regulations prescribing matters necessary or convenient for the carrying out of the Act. |
SCHEDULE 15 FURTHER AMENDMENTS OF THE TOBACCO CHARGES ASSESSMENT ACT 1955 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 10 | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 27(4) | E | Penalty for failure by liquidator to comply with certain requirement. |
| 27(4)(b) | A & E | Penalty for failure by liquidator to comply with certain requirements. |
| 40(2) | A & B | Penalty for non-appointment of public officer by company. |
| 40 | E | Requirement that company shall appoint public officer. |
| 42(b) | E | Governor-General may make regulations prescribing penalties not exceeding $40 for a breach of the regulations. |
SCHEDULE 16 FURTHER AMENDMENTS OF THE WOOL TAX (ADMINISTRATION) ACT 1964 RELATING TO OFFENCES
| SECTION | TYPE OF AMENDMENT | EXPLANATION OF PREVIOUS PROVISIONS |
|---|---|---|
| 8 | A | Penalty for failure by officers to observe secrecy in the performance of their duties related to the administration of the Principal Act. |
| 13(1) | B | Penalty for wool brokers to sell shorn wool unless registered. |
| 14(4) | A | Penalty for failure by wool dealers to notify Commissioner of purchases of wool in a State in which they are not registered or of first purchase of wool in a State. |
| 15(1) | B | Penalty for failure by manufacturers to register. |
| 16(1) | B | Penalty for unregistered exporters who export shorn wool. |
| 21 | A | Penalty for failure by wool brokers to give certificates to purchasers. |
| 22 | A | Penalty for failure by wool dealers to give certificates to purchasers, manufacturers or ship's agents. |
| 23 | A | Penalty for failure to comply with procedure for scouring-carbonizing notes. |
| 24 | A | Penalty for manufacturing or exporting shorn wool without obtaining certificate. |
| 25 | A | Penalty for manufacturing or exporting skin wool without obtaining certificate. |
| 26 | A | Penalty for failure to furnish certificate with wool. |
| 27 | A | Penalty for ship's agents to ship wool for export without a certificate. |
| 47(4) | E | Penalty for failure by liquidator to comply with certain requirements. |
| 47(4)(b) | A | Penalty for failure by liquidator to comply with certain requirements. |
| 54(1) | A & C | Requirement (garnishee) to pay tax by a person indebted to a person liable to the tax. |
| 86(6) | B | Penalty for failure by company to appoint a public officer. |
| 86 | E | Requirement that company shall appoint a public officer. |
| 89(1) | A | Penalty for failure to keep accounts and records. |
| 89(1)(a) | E | Requirement to keep accounts and records. |
| 93(1)(b) | E | Governor-General may make regulations prescribing penalties up to $100 for offences against the regulations. |