TAXATION ADMINISTRATION ACT 1974
No. 133 of 1974
An Act to amend the Taxation Administration Act 1953-1973.
BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows: —
Short title and citation.
1. (1) This Act may be cited as the Taxation Administration Act 1974.
(2) The Taxation Administration Act 1953-1973 is in this Act referred to as the Principal Act.
(3) The Principal Act, as amended by this Act, may be cited as the Taxation Administration Act 1953-1974.
Commencement.
2. Sections 1 and 2 shall come into operation on the day on which this Act receives the Royal Assent, and the remaining sections of this Act shall come into operation on such date as is, or such respective dates as are, fixed by Proclamation.
Heading of Part I.
3. Before section 1 of the Principal Act the following heading is inserted:—
“PART I—PRELIMINARY”.
Heading of Part II.
4. Before section 4 of the Principal Act the following heading is inserted:—
“PART II—COMMISSIONER OF TAXATION, SECOND COMMISSIONERS OF TAXATION AND DEPUTY COMMISSIONERS OF TAXATION”.
Tenure of Commissioner and Second Commissioners.
5. Section 5 of the Principal Act is amended by omitting sub-section (6).
6. After section 5 of the Principal Act the following section is inserted:—
Remuneration and allowances of Commissioner and Second Commissioners
“5a. (1) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.
“(2) The Commissioner of Taxation and the Second Commissioners of Taxation shall be paid such allowances as are prescribed.
“(3) This section has effect subject to the Remuneration Tribunals Act 1973-1974.”.
Delegation.
7. Section 8 of the Principal Act is amended by inserting in sub-section (1), after the words “functions under”, the words “this Act or”.
Heading of Part III.
8. Before section 9 of the Principal Act the following heading is inserted: —
“PART III—VALUATION BOARDS”.
9 (1) Section 11 of the Principal Act is repealed and the following section substituted: —
Remuneration and allowances of members.
“11. (1) The Chairman and the other members of a Valuation Board shall be paid such remuneration as is determined by the Remuneration Tribunal but, if no determination of that remuneration by the Tribunal is in operation, they shall be paid remuneration at the respective rates that were applicable immediately before the commencement of this section.
“(2) The Chairman and the other members of a Valuation Board shall be paid such allowances as are prescribed.
“(3) This section has effect subject to the Remuneration Tribunals Act 1973-1974.”.
(2) Subject to any regulations made for the purposes of sub-section (2) of section 11 of the Principal Act as amended by this Act, the Chairman and the other…
Overview
The Taxation Administration Act 1974, enacted by the Australian Parliament, amends the Taxation Administration Act 1953-1973 to enhance the administration of taxation laws. This Act was introduced to address the need for updating the existing framework governing the administration of taxation, ensuring it aligns with contemporary requirements and practices. One of the primary policy objectives of this Act is to provide clearer guidelines and more robust mechanisms for the enforcement of tax laws, particularly in the context of international transactions and exchange controls. The Act also aims to streamline the administrative processes related to the remuneration and allowances of tax officials, including the Commissioner of Taxation and members of Valuation Boards, ensuring that these positions are compensated appropriately and in line with legislative standards.
Scope and Application
The Taxation Administration Act 1974 applies to individuals and entities involved in taxation matters in Australia, including the Commissioner of Taxation, Second Commissioners, Deputy Commissioners, and members of Valuation Boards. This Act amends the Taxation Administration Act 1953-1973, establishing procedures for the remuneration and allowances of taxation officials and the delegation of their functions. Notably, Part IV of the Act pertains to exchange control and taxation certificates, governing the issuance of tax clearance certificates by the Commissioner of Taxation to individuals proposing transactions requiring Reserve Bank authorization, ensuring compliance with Australian tax laws to prevent tax avoidance or evasion. The Act imposes strict secrecy obligations on officers, prohibiting the disclosure of tax-related information except under specific circumstances, with penalties for breaches. The Act also outlines procedures for objecting to and reviewing the Commissioner’s decisions on the issuance of tax clearance certificates, including appeals to a Board of Review and ultimately to the High Court. The Act extends its jurisdiction to include both domestic and international applications, with specific provisions for the application of Australian courts to offences committed outside state and territory boundaries. Additionally, the Act mandates annual reporting by the Commissioner to the Treasurer on the operation of the relevant provisions.
Key Provisions
- The Taxation Administration Act 1974 amends the Taxation Administration Act 1953-1973, and introduces a series of changes designed to enhance the administration of taxation laws. Section 5a establishes that the remuneration and allowances for the Commissioner of Taxation and Second Commissioners are determined by the Remuneration Tribunal, with fallback rates applying if no determination is in force. Similarly, section 11 sets the remuneration and allowances for members of a Valuation Board according to the same principles. Section 14c provides that a tax clearance certificate must be issued by the Commissioner if the applicant's proposed act or thing does not involve tax avoidance or evasion, and the Commissioner is satisfied that the revenue will not be jeopardised. However, the Commissioner may refuse to issue a certificate if the proposed act might facilitate tax avoidance or evasion.
- The Act imposes obligations on the Commissioner and Second Commissioners to ensure that tax clearance certificates are issued appropriately, considering the risk of tax avoidance or evasion. It also places a duty on applicants to provide accurate and complete information when applying for a tax clearance certificate. Furthermore, section 14f mandates strict confidentiality for officers involved in the administration of the Act, prohibiting them from disclosing any information obtained in the course of their duties except when necessary for the enforcement of the Act.
- Failure to comply with the requirements to furnish information, attend hearings, or provide truthful statements can result in criminal penalties. Under section 14k, an individual can be fined up to $500 or imprisoned for up to 6 months for non-compliance or providing false information. If a court orders a person to comply with a requirement and they fail to do so, they face additional penalties of a fine up to $1,000 or imprisonment for up to 1 year. The Act also stipulates that any officer who breaches the secrecy provisions may be fined $1,000 or imprisoned for up to 1 year. These provisions ensure that the administration of the taxation laws is conducted efficiently and with integrity, while also protecting sensitive information from unauthorised disclosure.
- Area of Law
- Taxation Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Definitions & Interpretation
- Enforcement Powers
- Offence Provisions
- Reporting & Disclosure Obligations
