EXPLANATORY STATEMENT
STATUTORY RULES 1984 NO. 409
ISSUED BY THE AUTHORITY OF THE TREASURER
These regulations amending the Sales Tax Regulations are consequential upon amendments to the sales tax laws by the Taxation Laws Amendment Act 1984 (the amending Act) which, inter alia, substantially increased the maximum levels of court-imposed penalties for offences against the taxation laws and consolidated in the Taxation Administration Act 1953 provisions pertaining to offences and prosecutions under those laws.
Regulation 1 facilitates references to the Sales Tax Regulations which are referred to as the “Principal Regulations”.
By regulation 2 the penalty prescribed by regulation 17 of the Principal Regulations for incorrectly quoting sales tax certificate of registration is increased from $40 to $500.
Regulation 3 increases from $40 to $500 the penalties prescribed by regulation 60 for offences relating to the signing of applications, statements, returns or other documents required by the sales tax laws.
Regulation 4 will repeal regulations 70, 71, 75, 77 and 78 which contain procedural rules relating to prosecutions for offences under the sales tax laws. The repeal of these regulations is consequential upon the repeal of Parts VIII and IX of the Sales Tax Assessment Act (No 1) 1930 and the enactment of consolidated offence and prosecution provisions relating to the various taxation laws in Part III of the Taxation Administration Act 1953.
Where a penalty for a contravention of, or a failure to comply with, a provision of the Principal Regulations is not expressly provided by that provision, regulation 82 stipulates that the maximum penalty on conviction is $40. Regulation 5 will increase that maximum penalty to $500.
Form J of the Second Schedule (Notice of Election by the Defendant to Have a Taxation Prosecution Tried in a Higher Court) relates to existing regulation 78. That form will be omitted by regulation 6 in consequence of the repeal of regulation 78 by regulation 4.
By reason of section 8 of the Acts Interpretation Act 1901, the Commissioner may continue to institute prosecutions under section 45 of the Sales Tax Assessment Act (No. 1) 1930 in relation to offences specified in the section that are committed prior to its repeal by the amending Act. Paragraph 7(1)(a) contains transitional rules which will ensure that those regulations which presently apply to such prosecutions - namely, regulations 70, 71 and 77 - continue to apply notwithstanding the repeal of those regulations by regulation 4. Similarly, regulation 78 and Form J of the Second Schedule will, by virtue of paragraph 7(1)(b), continue to stipulate the manner of making an election under section 56 of the Sales Tax Assessment Act (No. 1) 1930 to have certain prosecutions tried in the High Court or a Supreme Court.
Sub-regulation 7(2) makes it clear that, where the term “the Act” is used in sub-regulation 7(1), it is to be taken to mean the Sales Tax Assessment Act (No. 1) 1930.
Overview
The Sales Tax Regulations Amendment (No. 2) Rules 1984, issued under the authority of the Treasurer, were enacted to align the Sales Tax Regulations with amendments introduced by the Taxation Laws Amendment Act 1984. These amendments sought to address the inadequacy of existing penalties and procedural rules for prosecuting offences under the sales tax laws. The regulations were issued by the Parliament of Australia and aim to ensure the enforcement provisions of the Sales Tax Assessment Act (No. 1) 1930 are updated in line with broader changes to the taxation framework, specifically those concerning penalties and the administration of prosecutions. The policy objective was to enhance the deterrent effect of penalties and streamline the prosecution process by consolidating relevant provisions in the Taxation Administration Act 1953.
Scope and Application
This statutory rule, issued by the authority of the Treasurer, pertains to the amendments of the Sales Tax Regulations, consequential to the Taxation Laws Amendment Act 1984, which among other things, substantially increased the maximum levels of court-imposed penalties for offences against the taxation laws and consolidated provisions relating to offences and prosecutions under these laws in the Taxation Administration Act 1953. These regulations apply to any person or entity subject to the sales tax laws, including those involved in the signing of applications, statements, returns or other documents required by the sales tax laws. They extend to the Commonwealth jurisdiction, as the amendments are made to federal laws. The regulations also include provisions that ensure certain procedural rules continue to apply to prosecutions that were instituted before the repeal of certain sections of the Sales Tax Assessment Act (No 1) 1930. The maximum penalties for various contraventions have been increased from $40 to $500, with specific regulations addressing the incorrect quoting of sales tax certificates of registration and offences relating to the signing of required documents. Additionally, certain regulations and forms pertaining to prosecution procedures have been repealed and omitted, reflecting the consolidation of offence and prosecution provisions in the Taxation Administration Act 1953.
Key Provisions
The main operative sections of the Statutory Rules 1984 No. 409, which amend the Sales Tax Regulations, are set out in Regulations 2 to 5 and Regulation 82. Regulation 2 increases the penalty for incorrectly quoting a sales tax certificate of registration from $40 to $500. Regulation 3 raises the penalties for offences relating to the signing of applications, statements, returns, or other documents required by the sales tax laws from $40 to $500. Regulation 4 repeals several regulations that contain procedural rules for prosecutions under the sales tax laws. Regulation 5 increases the maximum penalty on conviction for a contravention of, or a failure to comply with, a provision of the Principal Regulations to $500. Regulation 82 stipulates that the maximum penalty on conviction is $40 where a penalty for a contravention of, or a failure to comply with, a provision of the Principal Regulations is not expressly provided by that provision.
The Act imposes obligations on parties or entities governed by the Sales Tax Regulations to correctly quote sales tax certificates of registration and to properly sign applications, statements, returns, or other documents required by the sales tax laws. Failure to comply with these obligations may result in penalties of up to $500. The Act also imposes obligations on the Commissioner to institute prosecutions under section 45 of the Sales Tax Assessment Act (No. 1) 1930 in relation to offences specified in the section that are committed prior to its repeal by the amending Act.
Any breach of the Sales Tax Regulations may result in penalties of up to $500. The maximum penalties on conviction for offences against the taxation laws have been substantially increased by the amending Act. The Act also provides for civil and criminal consequences for breach, including imprisonment and fines. The maximum penalties for breach of the Sales Tax Regulations are not expressly stated in the Act, but Regulation 82 stipulates that the maximum penalty on conviction is $40 where a penalty for a contravention of, or a failure to comply with, a provision of the Principal Regulations is not expressly provided by that provision. However, this maximum penalty is increased to $500 by Regulation 5.