Commonwealth of Australia Explanatory Memoranda

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TAX LAWS AMENDMENT (CONFIDENTIALITY OF TAXPAYER INFORMATION) BILL 2009

2008-2009-2010




               THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA











                          HOUSE OF REPRESENTATIVES











   Tax laws amendment (CONFIDENTIALITY OF TAXPAYER INFORMATION) BILL 2009











                    SUPPLEMENTARY EXPLANATORY MEMORANDUM











             Amendments to be moved on behalf of the Government








                     (Circulated by the authority of the
                      Treasurer, the Hon Wayne Swan MP)



Table of contents


General outline and financial impact    5


Chapter 1    Confidentiality of taxpayer information     7



General outline and financial impact

Amendments 1 to 15 - confidentiality of taxpayer information


         The amendments remove provisions which specify the only
         circumstances in which taxpayer information can be disclosed to the
         Parliament and parliamentary committees, as recommended by the
         Senate Standing Committee of Privileges in its report of 4 June
         titled Statutory secrecy provisions and parliamentary privilege -
         an examination of certain provisions of the Tax Laws Amendment
         (Confidentiality of Taxpayer Information) Bill 2009.  This change
         alleviates concerns that the Bill restricts disclosure of taxpayer
         information to parliamentary committees, and will clarify that
         disclosures of taxpayer information to a Minister are only allowed
         in the circumstances specified in the Bill.


         Broadly, the amendments also allow taxpayer information obtained by
         a law enforcement officer for the investigation of a serious
         offence to also be disclosed to a court or tribunal for the
         prosecution of a serious offence.


         The amendments also ensure that taxpayers who have nominated
         representatives to deal with the Australian Taxation Office on
         their behalf do not have to renominate the representative.


         Several technical corrections are also made to the Bill.


         Proposal announced:  These amendments have not previously been
         announced.


         Financial impact:  Nil.


         Compliance cost impact:  Nil.



Chapter 1
Confidentiality of taxpayer information

Disclosure to Parliament and parliamentary committees - Amendments 1 to 7,
and 9 to 12


      1. These amendments remove the proposed limitations in the Bill on the
         operation of parliamentary privilege as it applies to disclosures
         of taxpayer information to Parliament and parliamentary committees.
          As a consequence of these changes, parliamentary privilege and the
         procedures that have been developed around the operation of that
         privilege (see for instance, Chapter 2 to Odgers' Australian Senate
         Practice, 12th Edition) will govern the circumstances in which such
         disclosures can be made.


      2. These amendments continue to clarify the circumstances in which
         taxpayer information can be disclosed to Ministers.  This
         recognises that one of the key features of the new framework is to
         address the inconsistencies and uncertainties inherent in the
         existing law as to when taxpayer information can lawfully be
         provided to a Minister.


Disclosure to courts and tribunals - Amendment 8


      3. The specifically listed disclosures in proposed section 355-70 in
         Schedule 1 to the Taxation Administration Act 1953 allow
         disclosures of taxpayer information to law enforcement agencies for
         certain purposes, including the investigation and prosecution of a
         serious offence.


      4. Enabling taxpayer information to be used in the prosecution of a
         non-taxation serious offence is a feature of the new framework and
         recognises the important role that taxation information can play in
         a whole-of-government approach in combating serious crime.
         Amendment 8 recognises that in some circumstances a 'taxation
         officer' may need to provide the taxpayer information directly to a
         court to enable the successful prosecution of a particular case.


Taxpayer nominated representatives - Amendment 13


      5. Taxpayers may nominate representatives to act on their behalf when
         dealing with the Australian Taxation Office.  Amendment 13 ensures
         that nominations made before the commencement of this Bill will
         continue.


Consequential amendments - Amendments 14 and 15


      6. Amendments 14 and 15 make technical corrections to include
         references to the Taxation Administration Act 1953 in the Taxation
         (Interest on Overpayments and Early Payments) Act 1983 and the
         Termination Payments Tax (Assessment and Collection) Act 1997 to
         direct readers to the taxation secrecy and disclosure provisions.