Taxation Administration Amendment Regulations 2002 (No. 2)

Overview

The Taxation Administration Amendment Regulations 2002 (No. 2) were introduced under the authority of the Minister for Revenue and Assistant Treasurer, amending the Taxation Administration Regulations 1976 to address a specific gap in the existing regulatory framework. The primary purpose of these amendments was to recognise additional Royal Commissions as eligible entities under the Taxation Administration Act 1953, allowing them to receive taxation information in certain circumstances. The Act permits the disclosure of tax information to authorised Royal Commission officers if certain conditions are met, but previously, only one Royal Commission was prescribed as eligible. This amendment responds to requests from the Royal Commission into the Building and Construction Industry and the Royal Commission into corrupt or criminal conduct by a Western Australian police officer, which followed the legislative process outlined in the Act to become eligible Royal Commissions. The changes will facilitate their ability to access necessary taxation information, thus supporting their investigations into significant issues of public concern.

Scope and Application

The Taxation Administration Amendment Regulations 2002 (No. 2) amends the Taxation Administration Regulations 1976 to designate two additional Royal Commissions as eligible to receive certain taxation information under the Taxation Administration Act 1953. These regulations apply to the Commissioner of Taxation and authorised Royal Commission officers of the Royal Commission into the Building and Construction Industry and the Royal Commission into corrupt or criminal conduct by a Western Australian police officer. The Act allows the Commissioner of Taxation to disclose information to an authorised Royal Commission officer if specific criteria are met, and the amended regulation extends this provision to the newly designated Royal Commissions. The eligibility of these Royal Commissions is determined by the Minister for Revenue and Assistant Treasurer, who must respond in writing within 28 days to a request by a Royal Commission to be prescribed as eligible. The response must then be tabled in Parliament. The amendments will take effect from the date of gazettal, thereby enhancing the scope of entities capable of accessing taxation information for specific investigative purposes.

Key Provisions

The Taxation Administration Amendment Regulations 2002 (No. 2) introduce modifications to Regulation 3A of the Taxation Administration Regulations 1976 (paragraph 1). These changes are necessary to align with the requirements of the Taxation Administration Act 1953 (TAA). Specifically, Regulation 3A is updated to recognise the Royal Commission into the Building and Construction Industry and the Royal Commission into corrupt or criminal conduct by a Western Australian police officer as eligible Royal Commissions (paragraph 2). This designation enables these Commissions to receive taxation information under certain conditions, as stipulated in the Act. The Act and the associated Regulations impose several obligations and requirements on the parties involved (paragraph 3). The Commissioner of Taxation is authorised to disclose information acquired under a tax law to an authorised Royal Commission officer if specific criteria are met (Section 3E of the TAA 1953). An authorised Royal Commission officer is defined as a person or persons who constitute the eligible Royal Commission or an official authorised by the chairperson to perform the functions of an authorised Royal Commission officer (subsection 2(1) of the TAA 1953). Additionally, the Act allows a Royal Commission to request the Minister to refer the matter to the Governor-General for the creation of a regulation to designate the Commission as an eligible Royal Commission (subsection 17C(2) of the Act). The Minister must respond within 28 days, providing reasons for the decision to refer or not refer the matter to the Governor-General, and lay a copy of the notice before each House of Parliament (subsections 17C(3) and 17C(4) of the Act). Failure to comply with the provisions of the Act or the Regulations may result in various consequences (paragraph 4). While the Explanatory Statement does not detail specific offences or penalties for breaches, the TAA 1953 contains general provisions for penalties associated with non-compliance with tax laws. These penalties may include fines and, in certain cases, imprisonment. The maximum penalties for offences under the TAA 1953 are set out in the Act and can vary depending on the nature and severity of the offence. Compliance with the Regulations is essential to avoid these potential consequences.