Taxation Administration Amendment Act 2000 (ACT)

AUSTRALIAN CAPITAL TERRITORY

Taxation Administration Amendment Act 2000

No 47 of 2000

An Act to amend the Taxation Administration Act 1999

[Notified in ACT Gazette No. 39: 28 September 2000]

The Legislative Assembly for the Australian Capital Territory enacts as follows:

1. Name of Act

   This Act is the Taxation Administration Amendment Act 2000.

2. Commencement

   This Act commences on the day it is notified in the Gazette.

3. Act amended

   This Act amends the Taxation Administration Act 1999.

4. Interest rate

   Section 26 is amended—

(a)by omitting paragraph (2) (a) and substituting the following paragraph:

“(a)unless an order is in force under paragraph (b), the Treasury Note yield rate rounded to the 2nd decimal place (with 0.005 rounded to 0.01); or”; and

(b)by inserting after subsection (2) the following subsection:

“(2A) For paragraph (2) (a), the Treasury Note yield rate for a day is the weighted average yield set at the last weekly tender for the 13 week Treasury Note before—

(a)if the day is a day in the 1st 6 months of a year—the end of November in the previous year; or

(b)if the day is a day in the 2nd 6 months of a year—the end of May in the year.”.

1. Repeal

   Section 27 is repealed.

2. Amount of penalty tax

   Section 31 is amended by inserting after subsection (1) the following subsections:

“(1A)  The amount of penalty tax payable in respect of a tax default is 50% of the amount of tax unpaid if the commissioner is satisfied that the tax default was caused wholly or partly by a failure by the taxpayer (or a person acting on behalf of the taxpayer) to take reasonable care to fulfil the taxpayer’s obligations under a tax law.

“(1B)  Subsection (1A) does not apply if the tax payer satisfies the commissioner that the taxpayer (or a person acting on behalf of the taxpayer) had a reasonable excuse for the failure.

“(1C)  Subsections (1A) and (1B) apply to a tax default that happened before their commencement in the same way as they apply to a tax default that happened after their commencement.”.

1. Substitution

   The note following section 34 is omitted and the following note substituted:

NoteThe following table contains a summary of the effect of sections 31 to 34:

Rates of penalty tax 

basic rate	disclosure before investigation begins		intentional disregard for tax law
before notification	after notification
failure to take reasonable care	25%	5%	20%	90%
failure to take reasonable care and no reasonable excuse	50%	10%	40%	90%
intentional disregard of the law	75%	15%	60%	90%

1. Repeal

   Section 35 is repealed.

2. Insertion

   After section 139A the following section is inserted:

“139B Application—amendment by the Taxation Administration Amendment Act 2000

“(1)     Despite subsection 31 (1C), subsections 31 (1A) and 31 (1B) do not apply to a liability to pay penalty tax under Division 2 of Part 5 if an assessment in respect of the liability was issued before subsections 31 (1A) and 31 (1B) commenced.

“(2)    This section expires 2 years after it commences.”.

Endnote

Act amended

1. Republished as in force on 31 July 2000 (Republication No 1).  See also Acts 1999 Nos 66 and 76; 2000 No 16.

[Presentation speech made in Assembly on 29 June 2000

]

©  Australian Capital Territory 2000