EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 410
ISSUED BY THE AUTHORITY OF THE TREASURER
These regulations amending the Sales Tax Procedure Regulations will increase the level of penalties for offences against the Principal Regulations, and make a number of amendments consequential upon amendments to the Sales Tax Procedure Act 1934 (the Act) by the Taxation Laws Amendment Act 1984 (the amending Act) which was assented to on 19 October 1984.
Regulation 1 facilitates references to the Sales Tax Procedure Regulations which are referred to as the “Principal Regulations”.
Regulation 2 will repeal regulations 13, 14, 18, 20 and 21 of the Principal Regulations which contain procedural rules relating to proceedings against persons for offences under the Act. The repeal of these regulations is consequential upon the repeal of sections 7, 9 and 11 of the Act by the amending Act, and their replacement by consolidated offences and prosecution provisions in Part III of the Taxation Administration Act 1953.
Regulation 3 will increase from $40 to $500 the penalties specified in regulation 22 for offences relating to the signing of documents by or for a person.
Regulation 4 will repeal existing regulation 36 and substitute a new regulation 36 to provide that a person who contravenes any provision of the Principal Regulations for which a penalty is not expressly provided is guilty of an offence for which the maximum penalty is $500 - an increase from $40.
By reason of section 8 of the Acts Interpretation Act 1901, the Commissioner may continue to institute prosecutions under sections 7, 9 and 11 of the Act in relation to offences
specified in those sections that are committed prior to their repeal by the amending Act. Regulation 5 contains transitional rules which will ensure that existing regulations which apply to such prosecutions - namely, regulations 13, 14, 20 and 21 - continue to apply notwithstanding the repeal of those regulations by regulation 2.
Overview
The Sales Tax Procedure Regulations 1984, as amended by Statutory Rules 1984 No. 410, were introduced to address the need for increased penalties and regulatory adjustments following changes made by the Taxation Laws Amendment Act 1984. Enacted by the Parliament of Australia, these regulations were designed to align the Sales Tax Procedure Regulations with the new consolidated offences and prosecution provisions introduced by the amending Act, which received royal assent on 19 October 1984. The primary policy objective was to enhance the effectiveness of enforcement actions under the Sales Tax Procedure Act 1934 by increasing penalties for various regulatory breaches, thereby ensuring greater compliance and deterrence.
Scope and Application
The Sales Tax Procedure Regulations 1984, as amended by these statutory rules, apply to any person or entity engaged in conduct or transactions subject to the Sales Tax Procedure Act 1934. These regulations are specifically tailored to the Commonwealth jurisdiction, impacting those who are subject to the Sales Tax Act within Australia. The regulations are designed to enforce the provisions of the Act and the Principal Regulations by increasing penalties for certain offences and ensuring procedural compliance with updated legislative frameworks. Notably, the amendments include the substitution of higher penalties for offences relating to the signing of documents and contraventions of unspecified provisions in the Principal Regulations, reflecting a shift in enforcement strategy. Furthermore, the regulations ensure continuity in the application of certain procedural rules for ongoing prosecutions of pre-amendment offences, thus maintaining legal certainty for affected parties. The scope of these regulations is extensive, covering all entities subject to the Sales Tax Act and reinforcing the legislative intent to uphold compliance through effective penalties and procedural guidelines.
Key Provisions
The key provisions of these statutory rules primarily serve to amend the Sales Tax Procedure Regulations to align with changes introduced by the Taxation Laws Amendment Act 1984. Regulation 1 (1) simplifies references to the Sales Tax Procedure Regulations by identifying them as the "Principal Regulations". Regulation 2 (2) repeals specific regulations (13, 14, 18, 20, and 21) that are no longer applicable due to the repeal of certain sections (7, 9, and 11) of the Sales Tax Procedure Act 1934. These sections have been replaced by consolidated offences and prosecution provisions in the Taxation Administration Act 1953.
The obligations imposed by these regulations primarily involve ensuring that procedural rules relating to offences under the Sales Tax Procedure Act are updated and aligned with the new legislative framework. Regulation 3 (3) increases the penalties for offences related to the signing of documents by or for a person from $40 to $500. Regulation 4 (4) addresses the penalty for contraventions of provisions of the Principal Regulations where a specific penalty is not expressly provided, setting the maximum penalty at $500, up from $40. Regulation 5 (5) provides transitional rules to ensure that certain existing regulations continue to apply to prosecutions for offences committed before the repeal of sections 7, 9, and 11 of the Sales Tax Procedure Act 1934.
The statutory rules also establish the legal consequences for breaches of these regulations. Regulation 3 (3) explicitly states that the penalty for offences relating to the signing of documents has been increased to $500. Regulation 4 (4) sets out that any contravention of the Principal Regulations for which a specific penalty is not provided is an offence with a maximum penalty of $500. These penalties reflect the seriousness of non-compliance with tax regulations and the need to enforce penalties commensurate with the updated legislative framework. The regulations ensure that any existing prosecutions for offences under the repealed sections of the Sales Tax Procedure Act 1934 will still be subject to the applicable penalties and procedures, as outlined in Regulation 5 (5).