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Senate

Inspector-General of Taxation Bill 2003

Supplementary Explanatory Memorandum

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

General outline and financial impact

Amendments to the Inspector-General of Taxation Bill 2002

The amendments to the Inspector-General of Taxation Bill 2002 have resulted from the consideration of representations made after the introduction of the bill.

Date of effect: The day after which the bill receives Royal Assent.

Proposal announced: Not previously announced.

Financial impact: None.

Chapter 1 Amendments to the Inspector-General of Taxation Bill 2002

Outline of chapter

1.1 The Inspector-General of Taxation Bill 2002 will establish a statutory office to review tax administration and to report to the Government with recommendations for improving tax administration for the benefit of all taxpayers. There are a number of amendments resulting from the consideration of representations made after the introduction of the bill.

Explanation of the amendments

Amendment 1

1.2 Clause 3 is the object clause of the bill.

1.3 The object clause has been expanded to more clearly identify the role and responsibilities of the Inspector-General. The clause now specifies:

the independent nature of advice being provided by the Inspector-General; and
the ability of the Inspector-General to identify systemic issues,

in relation to the administration of taxation laws.

Amendment 2

1.4 Subclause 8(2) of the bill currently allows the Minister to direct the Inspector-General to conduct a review and the Inspector-General must comply with any such direction.

1.5 The proposed amendment still allows the Minister to direct the Inspector-General to conduct a review. However, the Inspector-General would not be required to immediately commence the review directed by the Minister. The Inspector-General would be able to determine the position of the review in the Inspector-General's work program. The Inspector-General would take into account other issues being examined when determining the relative priority of the review. It could be the case that the issue in the Minister's direction may not be reviewed directly if the Inspector-General considers other issues for review offer greater benefits in improved tax administration.

Amendment 3

1.6 Clause 11 currently authorises the Minister to table or publicly release reports by the Inspector-General.

1.7 The proposed amendment requires the Minister to table or publicly release a report of the Inspector-General within a specified timeframe. Normally this would be within 25 sitting days of the Minister receiving a report. However, the Inspector-General may recommend that, due to special sensitivities or complexities of the report, that the publication deadline be extended.

1.8 The amended clause is similar to Section 12 of the Productivity Commission Act 1998, which includes a similar timeframe. However, it retains the option of publicly releasing a report outside Parliamentary sitting days.


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