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Footnotes
Chapter 1 Introduction
[1]
ATO, ‘Self assessment and the taxpayer’ viewed on 26 March 2007 at http://www.ato.gov.au/individuals/content.asp?doc=/content/13685.htm.
[2]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 19.
[3]
JCPA, Report 326, An Assessment of Tax: A Report on an Inquiry into
the Australian Taxation Office (1993) pp 63-64.
[4]
Inspector-General of Taxation, sub 48, p 11.
[5]
ANAO, Reports of the Auditor-General on Efficiency Audits, Controls
over Processing of Income Tax Assessments (1984) Australian Government
Publishing Service, p iii.
[6]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 65-66.
[7]
Cooper G et al, Cooper Krever & Vann’s Income Taxation: Commentary
and Materials (2005) Thomson, 5th Edition, p 875.
[8]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 65.
[9]
Ibid.
[10]
Mr L J Scott MP, House Hansard, 17 November 1993, p 2,978.
[11]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 3.
[12]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian Taxation
Office (1993) Report 326, p vii.
[13]
ATO, ‘Final Report on the Implementation of the Recommendations of Report
326 ”An Assessment of Tax’”, Correspondence, 20 October 1998.
[14]
Chamber of Commerce and Industry of Western Australia, sub 26, p 6, Taxation
Institute of Australia, sub 40, p 6.
[15]
CPA Australia, sub 36, p 7, Resolution Group Australia, sub 42, pp 6-8.
[16]
ATO, sub 50, p 35.
[17]
Inglis M, ‘Is Self-assessment Working? The Decline and Fall of the
Australian Income Tax System’, Australian Tax Review (2002) vol 31, pp
64-78.
[18]
Taxation Institute of Australia, sub 40, p 6.
[19]
For example, see Chamber of Commerce and Industry of Western Australia, sub
26, p 2, Fehily Loaring, sub 5, p 2.
[20]
CPA Australia, sub 36, p 7.
[21]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 68.
[22]
OECD, Tax Administration in OECD and Selected Non-OECD Countries:
Comparative Information Series (2006), October 2006, pp 57, 69-71, viewed
on 31 January 2007 at http://www.oecd.org/dataoecd/43/7/37610131.pdf.
[23]
Treasury, sub 51.1, p 5.
[24]
D’Ascenzo M, transcript, 20 April 2007, p 1.
[25]
Inspector-General of Taxation, sub 48, pp 4-5.
[26]
Senate Economics References Committee, Inquiry into Mass Marketed
Effective Schemes and Investor Protection, Interim Report (2001) p 16.
[27]
Calculated from information presented by the Inspector-General of Taxation,
sub 48, p 12.
[28]
Round robin financing is a circular transfer of funds between entities that
leaves no change in their total cash.
[29]
Non-recourse loans are where the lender cannot access the borrower’s other
assets if the borrower defaults. Limited recourse loans are where the lender’s
access to the borrower’s other assets is limited to the borrower’s profits from
the scheme.
[30]
ATO, sub 50.1, p 22.
[31]
Senate Economics References Committee, Inquiry into Mass Marketed
Effective Schemes and Investor Protection, Interim Report (2001) p 4.
[32]
ATO, sub 50.1, pp 7-8, 31-33.
[33]
Senate Economics References Committee, Inquiry into Mass Marketed
Effective Schemes and Investor Protection, Interim Report (2001) p 2.
[34]
Calculated from information presented by the Inspector-General of Taxation,
sub 48, p 12.
[35]
ATO, sub 50.1, p 25.
[36]
ATO, sub 50.1, pp 25-26.
[37]
ATO, sub 50.1, p 26.
[38]
This case is discussed in chapter five.
[39]
Justice Hill, quoted by the ATO, sub 50.1, p 10.
[40]
ATO, sub 50.1, p 7.
[41]
ATO, sub 50.1, p 5.
[42]
ATO, sub 50.1, p 4.
[43]
Commonwealth Ombudsman, sub 38, pp 5-6.
[44]
ATO, sub 50.1, p 9, Senate Economics References Committee, Inquiry into
Mass Marketed Effective Schemes and Investor Protection, Interim Report (2001)
pp 23-24.
[45]
ATO, ‘Mass marketed investment schemes – an overview’ viewed on 15 February 2007 at http://www.ato.gov.au/print.asp?doc=/content/59719.htm.
[46]
ATO, sub 50.1, p 7.
[47]
ATO, ‘Options for employee benefit arrangement participants’ viewed on 30 March 2007 at http://www.ato.gov.au/atp/content.asp?doc=/content/47656.htm.
[48]
Ibid.
[49]
Ibid.
[50]
ATO, sub 50.1, p 7.
[51]
Senate Economics References Committee, Inquiry into Mass Marketed
Effective Schemes and Investor Protection, Interim Report (2001) p 33.
[52]
ATO, sub 50.1, pp 13-17.
[53]
Treasury, sub 51, p 3.
[54]
Id, pp 3-4.
[55]
Taxation Laws Amendment (2006 Measures No 1) Act 2006.
[56]
Hon P Dutton MP, Minister for Revenue and Assistant Treasurer, ‘Tax Agent
Services – Release of Exposure Draft Legislation’ Media Release, 7 May 2007,
Hon C Bowen MP, Assistant Treasurer, Minister for Competition Policy and
Consumer Affairs, ‘Government Releases Draft Legislation for Tax Agent Services
Regime, Media Release, 29 May 2008.
[57]
Treasury, sub 51, p 4.
[58]
ATO, Compliance program 2007-08, p 65.
[59]
For an update on the ATO’s use of data matching, see ANAO, The
Australian Taxation Office's Use of Data Matching and Analytics in Tax
Administration, Audit Report No. 30 2007-08, 24 April 2008.
[60]
ATO, sub 50, p 3.
[61]
ATO, Annual Report 2006-07, pp 20, 37, 38, 48.
[62]
OECD, Tax Administration in OECD and Selected Non-OECD Countries:
Comparative Information Series (2006), October 2006, pp 102-03, viewed on 31 January 2007 at http://www.oecd.org/dataoecd/43/7/37610131.pdf. Examples of differences
are variations in tax rates and structure, types of taxes, collection of social
insurance contributions, and whether they are responsible for customs and
investigating tax fraud.
[63]
Inspector-General of Taxation, Transcript, 9 November 2006, p 15.
[64]
ATO, sub 50.1, p 19.
[65]
ATO, sub 50.1, p 19.
[66]
Ombudsman, sub 38, p 16.
[67]
Ombudsman, sub 38, p 9.
[68]
Ombudsman, sub 38, p 9.
[69]
Inspector-General of Taxation, Follow-up review into the Tax Office’s implementation
of agreed recommendations included in the six reports prepared by the
Inspector-General of Taxation between August 2003 and June 2006 (2007)
Commonwealth of Australia, p 5.
[70]
Ombudsman, sub 38, p 9.
[71]
Ombudsman, sub 38, p 16.
[72]
D’Ascenzo M, transcript, 9 November 2006, pp 31-32.
[73]
Scolaro D, ‘Tax Rulings: Opinion or Law? The Need for an Independent
‘Rule-Maker’’ (2006) Revenue Law Journal, vol 16, pp 127-128.
[74]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 112-13.
[75]
Ryle G, Pryor L and Metherell M, ‘Senate boss blasts PM’s monarchy’, Sydney
Morning Herald, 21 June 2005, p. 1 and Holmes B, ‘Both Bark and Bite: The
effectiveness of Senate committees’, (2005) 36th Conference of
Presiding Officers and Clerks, Samoa, p. 12.
[76]
Leighton C, transcript, 24 August 2006, pp 4-5.
[77]
Hon P Dutton MP, Minister for Revenue and Assistant Treasurer, ‘Amendments
to the Tax Law to Reduce Compliance Costs for Small Business’ Media Release, 6 December 2006, viewed on 29 May 2008 at http://assistant.treasurer.gov.au/DisplayDocs.aspx?pageID=&doc=pressreleases/2006/089.htm&min=pcd
[78]
ICAA, sub 37, p 7.
[79]
ATO, ‘Precedential ATO view,’ PS LA 2003/3, para 41, viewed on 28 August 2007 at http://law.ato.gov.au/atolaw/view.htm?docid=PSR/PS20033/NAT/ATO/00001.
[80]
House of Representatives Standing Committee on Family and Human Services, Balancing
Work and Family, December 2006, p 66.
[81]
Treasury, sub 51, pp 16-17.
[82]
Treasury, sub 51, p 17.
[83]
Treasury, sub 51, pp 17-18.
[84]
Treasury, sub 51, p 17.
Chapter 2 Biannual meetings
[1]
Other examples are the relationships between the Joint Standing Committee
on Electoral Matters and the Australian Electoral Commission and the Parliamentary
Joint Committee on Corporations and Financial Services and the Australian
Securities and Investments Commission.
[2]
D’Ascenzo M, transcript, 9 November 2006, p 32.
[3]
Id, pp 31-32.
[4]
See http://www.aph.gov.au/house/committee/jpaa/reports.htm.
[5]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 4.
[6]
Third biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 30 April 2008, p 30.
[7]
Id, p 5.
[8]
First biannual meeting with the Commissioner of Taxation, ATO, sub 1, p
29.
[9]
ATO, Annual Report 2006-07, p 138.
[10]
Commonwealth Ombudsman, sub 38.2, p 1.
[11]
First biannual meeting with the Commissioner of Taxation, Granger J,
transcript, 20 April 2007, p 8.
[12]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 8.
[13]
Ibid.
[14]
First biannual meeting with the Commissioner of Taxation, Granger J,
transcript, 20 April 2007, p 22.
[15]
Second biannual meeting with the Commissioner of Taxation, Vivian R, transcript, 21 September 2007, p 7.
[16]
Hon P Dutton MP, Minister for Revenue and the Assistant Treasurer, ‘Tax Office
debt collection enhancement — Reducing taxation debt and outstanding
superannuation guarantee charge payments’, Press Release, 8 May 2007,
viewed on 4 July 2007 at http://assistant.treasurer.gov.au/pcd/content/pressreleases/2007/055.asp.
[17]
Second biannual meeting with the Commissioner of Taxation, Crawford M,
transcript, 21 September 2007, p 10.
[18]
Third biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 30 April 2008, p 2.
[19]
First biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 29.
[20]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 6.
[21]
First biannual meeting with the Commissioner of Taxation, Granger J,
transcript, 20 April 2007, p 13.
[22]
Second biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 5.
[23]
First biannual meeting with the Commissioner of Taxation, Capgemini,
correspondence, 22 November 2006, exhibit 12, p 1.
[24]
First biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 32.
[25]
Second biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 5.
[26]
First biannual meeting with the Commissioner of Taxation, Capgemini,
correspondence, 22 November 2006, exhibit 12, p 2.
[27]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 5. Transfer pricing occurs where related entities
make an international transaction and, for example, adjust the price to reduce
the profit of the Australian entity and reduce tax paid in Australia.
[28]
ATO, ‘Income tax: Registered agricultural managed investment schemes’ TR
2007/D2, paras 3, 5, viewed on 4 July 2007 at http://law.ato.gov.au/atolaw/view.htm?DocID=DTR%2FTR2007D2%2FNAT%2FATO%2F00001.
[29]
Nielson L, Hicks P, Tax Laws Amendment (2007 Measures No. 3) Bill 2007,
Bills Digest no. 159 2006-07, 23 May 2007, Department of Parliamentary
Services, p 20.
[30]
Hon P Dutton MP, Minister for Revenue and Assistant Treasurer, Hon Senator
E Abetz, Minister for Fisheries, Forestry and Conservation, ‘Review of the
taxation of plantation forestry,’ Press Release, 21 December 2006, viewed on 4
July 2007 at http://assistant.treasurer.gov.au/pcd/content/pressreleases/2006/097.asp.
[31]
Hon P Dutton, Minister for Revenue and Assistant
Treasurer, ‘Non-forestry managed investment schemes,’ Press Release, 6 February 2007, viewed on 4 July 2007 at http://assistant.treasurer.gov.au/pcd/content/pressreleases/2007/007.asp.
[32]
Irvine J, ‘Plantation tax lurk gets chop, shares crash,’ Sydney Morning
Herald, 8 February 2007, p 24.
[33]
Ibid, Hon P Dutton, Minister for Revenue and Assistant Treasurer,
‘Non-forestry managed investment schemes,’ Press Release, 6 February 2007, viewed on 4 July 2007 at http://assistant.treasurer.gov.au/pcd/content/pressreleases/2007/007.asp.
[34]
ATO, ‘Transitional arrangements for agribusiness managed investment
schemes,’ Media release 2007/09, viewed on 20 March 2008 at http://www.ato.gov.au/corporate/content.asp?doc=/content/00095911.htm.
[35]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, pp 12-13.
[36]
Baker R, ‘Crime gangs rort $5 billion in tax office refunds,’ Age, 26 March 2007, p 3.
[37]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, pp 6-7.
[38]
First biannual meeting with the Commissioner of Taxation, Granger J,
transcript, 20 April 2007, p 7.
[39]
Ibid.
[40]
Knight E, ‘How privateers can sail through the tax system,’ Sydney
Morning Herald, 23 March 2007, p 21.
[41]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 17.
[42]
Senate Standing Committee on Economics, Private equity investment in Australia (2007).
[43]
First biannual meeting with the Commissioner of Taxation, Konza M, transcript, 20 April 2007, p 18.
[44]
Second biannual meeting with the Commissioner of Taxation, Vivian R, transcript, 21 September 2007, p 8.
[45]
Second biannual meeting with the Commissioner of Taxation, Konza M, transcript, 21 September 2007, p 9.
[46]
Second biannual meeting with the Commissioner of Taxation, Konza M, transcript, 21 September 2007, p 10.
[47]
Section 251K of the Income Tax Assessment Act 1936.
[48]
Treasury, Exposure draft, Tax Agents Services Bill 2008, clause
30-20.
[49]
Sections 290-50 and 290-65 of the Taxation Administration Act 1953.
Under section 4AA of the Crimes Act 1914, the current value of a penalty
unit is $110. Broadly, a tax exploitation scheme is an arrangement entered into
with the sole or dominant purpose of reducing tax and is not reasonably
arguable at law.
[50]
Third biannual meeting with the Commissioner of Taxation, ATO, sub 2, p 2.
[51]
Drummond M, ‘Send a thief to catch a thief,’ Australian Financial Review,
1 March 2008, p 30.
[52]
ATO, Tax havens and tax administration, (2007) p 8.
[53]
Third biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 12.
[54]
Third biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 30 April 2008, p 6.
[55]
Third biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 30 April 2008, p 8.
[56]
Ibid.
[57]
Third biannual meeting with the Commissioner of Taxation, Granger J,
transcript, 30 April 2008, p 8.
[58]
For an overview of the ATO’s operations in relation to tax havens, see
ANAO, The Australian Taxation Office's Strategies to Address
Tax Haven Compliance Risks, Audit Report No. 36
2008-09, 29 May 2008.
[59]
O’Toole C, ‘Tax Office checks security after bungles,’ Australian
Financial Review, 6 December 2007, p 6.
[60]
Third biannual meeting with the Commissioner of Taxation, Gibson B,
transcript, 30 April 2008, p 9.
[61]
Inspector-General of Taxation, Review of the potential revenue bias in
private binding rulings involving large complex matters (2008) Commonwealth
of Australia, p 3.
[62]
Id, pp 4-7, 124.
[63]
Third biannual meeting with the Commissioner of Taxation, D’Ascenzo M, transcript,
30 April 2008, p 18.
[64]
Id, pp 19-23.
[65]
Kazi E, ‘ATO warns dodgy bosses’ Australian Financial Review, 21 April 2007, p 3.
Chapter 3 Complex legislation
[1]
Taxation Institute of Australia, sub 40, p 2, CPA Australia, sub 36, pp
5-6, Noroozi A, transcript, 28 July 2006, p 66, Cantamessa S, transcript, 28
July 2006, National Institute of Accountants, sub 31, p 2, Greco A, transcript,
25 August 2006, pp 17-18, 23.
[2]
Inspector-General of Taxation, sub 48, pp 10-11, Commonwealth Ombudsman,
sub 38, pp 3-5.
[3]
Commonwealth Ombudsman, sub 38, p 4.
[4]
Hon A Cadman MP, House Hansard, 9 October 2006, p 111, Hon P
Costello MP, Treasurer, House Hansard, 22 June 2006, p 1, Hon D Kerr MP,
House Hansard, 22 June 2006, p 1, Senator Hon H Coonan, Senate
Hansard, 20 June 2005, p 15, Mr C Hayes MP, House Hansard,
16 August 2006, p 46.
[5]
Hill J, FCT v Cooling (1990) 90 ATC 4472, 4488.
[6]
Deane J in Hepples v FCT [No. 2] (1991) 65 ALJR 650, 657.
[7]
Kirby J, FCT v Scully [2000] HCA 6, para 43.
[8]
Associate Professor McCabe, AAT hearing of Trustee for the Estate of
EV Duke v FCT (2002) 50 ATR 1060, quoted in Wallis D, ‘The tax complexity
crisis’ Australian Taxation Review (2006) vol 35, p 278.
[9]
Commonwealth Ombudsman, sub 38, p 4.
[10]
Board of Taxation, Identification and possible repeal of the inoperative
provisions of the 1936 and 1997 Income Tax Assessment Acts, (2005)
Commonwealth of Australia, p 5.
[11]
CPA Australia, sub 36, p 5.
[12]
Wallis D, ‘The tax complexity crisis’ Australian Taxation Review
(2006) vol 35, pp 277-78.
[13]
Commonwealth Ombudsman, sub 38, p 4.
[14]
Krever R, ‘Taming Complexity in Australian Income
Tax’ Sydney Law Review (2003) vol 25, p 468.
[15]
Id, pp 470-72.
[16]
Id, pp 480-83.
[17]
Id, pp 483-88.
[18]
Id, p 488.
[19]
Mills A, transcript, 28 July 2007, p 54.
[20]
ANAO, Preparation of the Tax Expenditures Statement, Audit Report
No. 32 2007-08, 8 May 2008, pp 10-14.
[21]
Id, p 14.
[22]
Dirkis M, transcript, 28 July 2006, p 61.
[23]
Cantamessa S, transcript, 28 July 2006, p 68.
[24]
Australian Chamber of Commerce and Industry, sub 43, p 5.
[25]
National Institute of Accountants, sub 31, p 3.
[26]
McKerchar M, ‘The Impact of Income Tax Complexity on Practitioners in Australia’ Australian Tax Forum (2005) vol 20, p 538.
[27]
Evans C et al, A report into Taxpayer Costs of Compliance (1997)
Commonwealth of Australia, p ix.
[28]
Australian Bureau of Statistics, Australian National Accounts: National
Income, Expenditure and Product, December Quarter 2007 (2008) Cat No
5206.0, p 21.
[29]
‘Ignorantia juris non excusat,’ Wikipedia,
viewed on 7 August 2007 at http://en.wikipedia.org/wiki/Ignorantia_juris_non_excusat.
[30]
Mills A, transcript, 28 July 2006, p 54.
[31]
National Institute of Accountants, sub 31, p 3.
[32]
McKerchar M, ‘The Impact of Income Tax Complexity on Practitioners in Australia’ Australian Tax Forum (2005) vol 20, p 542.
[33]
Inspector-General of Taxation, sub 48, p 11.
[34]
ATO, sub 50.3, p 41, D’Ascenzo M, transcript, 20 April 2007, p 3, ‘A positive future: The latest research results’, the Taxagent, December 2007, p 5.
[35]
ATO, sub 50.3, p 134, ‘A positive future: The latest research results’, the
Taxagent, December 2007, p 5.
[36]
Granger J, transcript, 20 April 2007, p 4.
[37]
ATO, sub 50, p 35.
[38]
Id, p 46.
[39]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 90-91.
[40]
D’Ascenzo M, ‘Response to Regulation Impact Statements (RISs) and
Compliance Costs’ viewed on 7 March 2007 at http://www.ato.gov.au/super/content.asp?doc=/content/22860.htm&pc=001/001/001/002/002&mnu=9861&mfp=001/007&st=&cy=1.
[41]
Regulation Taskforce, Rethinking Regulation: Report of the Taskforce on
Reducing Regulatory Burdens on Business (2006) Commonwealth of Australia, p 15.
[42]
Inglis M, ‘Is Self-assessment Working? The Decline and Fall of the
Australian Income Tax System’ Australian Tax Review (2002) vol 31, p 65.
[43]
Regulation Taskforce, Rethinking Regulation: Report of the Taskforce on
Reducing Regulatory Burdens on Business (2006) Commonwealth of Australia, p 15.
[44]
Australian Chamber of Commerce and Industry, sub 43, p 5, Taxation
Institute of Australia, sub 40.1, p 4.
[45]
Id, pp 145-75.
[46]
Australian Government, Rethinking Regulation: Report of the Taskforce on
Reducing Regulatory Burdens on Business, Australian Government’s Response (2006)
pp 75-89, viewed on 7 March 2007 at http://www.treasury.gov.au/contentitem.asp?ContentID=1141&NavID=.
[47]
Office of Best Practice Regulation, Best Practice Regulation Handbook (2007)
Commonwealth of Australia, pp 32, 34-37.
[48]
Senate Regulations and Ordinances Committee, ‘Guidelines on the Committee’s
application of its Principles,’ viewed on 11 June 2008 at http://www.aph.gov.au/Senate/committee/regord_ctte/guidelines.htm.
[49]
Krever R, ‘Taming Complexity in Australian Income Tax’ Sydney Law Review
(2003) vol 25, p 491.
[50]
Id, p 492.
[51]
Id, p 493.
[52]
Taxation Institute of Australia, sub 40.1, p 3.
[53]
McCullough P, transcript, 9 November 2006, p 53.
[54]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 82-83.
[55]
McKerchar M, Meyer K, Karlinsky S, ‘Making Progress in Tax Simplification:
A Comparison of the United States, Australia, New Zealand and the United
Kingdom,’ chapter 20 in McKerchar M, Walpole M (eds) Further Global
Challenges in Tax Administration (2006) Fiscal Publications, p 374.
[56]
Taxation Institute of Australia, sub 40.1, p 3.
[57]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 83.
[58]
Board of Taxation, Government Consultation with the Community on the
Development of Taxation Legislation (2002) Commonwealth of Australia, p iv.
[59]
Regulation Taskforce, Rethinking Regulation: Report of the Taskforce on
Reducing Regulatory Burdens on Business (2006) Commonwealth of Australia, pp 112-13.
[60]
National Institute of Accountants, sub 31, p 3.
[61]
Drum P, transcript, 25 August 2006, p 30.
[62]
Noroozi A, transcript, 28 July 2006, pp 62-63.
[63]
Mills A, transcript, 28 July 2006, p 63.
[64]
Australian Chamber of Commerce and Industry, sub 43, p 5.
[65]
Evans A, ‘Transparency on training’ Australian Financial Review, 20 July 200 7, p 79.
[66]
Treasury, sub 51, p 2.
[67]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 69.
[68]
Board of Taxation, Improving Australia’s Tax Consultation System (2007)
Commonwealth of Australia, pp vi, 3-5, Board of Taxation, Government
Consultation with the Community on the Development of Taxation Legislation (2002)
Commonwealth of Australia, p vi.
[69]
Id, p 11.
[70]
Id, p 41.
[71]
Board of Taxation, Improving Australia’s Tax Consultation System (2007)
Commonwealth of Australia, p 4.
[72]
Hon C Bowen MP, Assistant Treasurer and Minister for Competition Policy and
Consumer Affairs, ‘Tax Design Panel to Look at Ways to Streamline Process for
Changing Tax Laws,’ Media Release, 8 February 2008.
[73]
Treasury, ‘Terms of reference: Australia’s future tax system’ viewed on 26 May 2008 at http://www.treasury.gov.au/contentitem.asp?NavId=037&ContentID=1376.
[74]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 81-84.
[75]
Krever R, ‘Taming Complexity in Australian Income
Tax’ Sydney Law Review (2003) vol 25, pp 480-83.
[76]
Treasury, sub 51, p 2.
[77]
Hon P Costello MP, Treasurer, Exposure Draft of the Tax Laws Amendment
(Taxation of Financial Arrangements) Bill 2006, Explanatory Material, pp
3-8.
[78]
Krever R, ‘Taming Complexity in Australian Income Tax’ Sydney Law Review
(2003) vol 25, pp 498-99.
[79]
Evans C, ‘Diminishing returns: The case for reduced annual filing for
personal income taxpayers in Australia’ Australian Tax Review (2004) vol
33, p 169.
[80]
OECD, Tax Administration in OECD and Selected Non-OECD Countries:
Comparative Information Series (2006), October 2006, p 6, viewed on 31 January 2007 at http://www.oecd.org/dataoecd/43/7/37610131.pdf
[81]
Ibid.
[82]
OECD, Economic Survey of Australia, 2006, (2006) Policy Brief, p 6 viewed
on 10 August 2007 at http://www.oecd.org/dataoecd/43/35/37201820.pdf,
‘Tax-returns system needs simplifying’ Australian Financial Review 31
January 2007 (editorial) p 54.
[83]
Evans C, ‘Diminishing returns: The case for reduced annual filing for
personal income taxpayers in Australia’ Australian Tax Review (2004) vol
33, pp 175-76.
[84]
Fehily Loaring, sub 5, p 4, Morris B, sub 35, p 1.
[85]
Greco A, transcript, 28 July 2006, p 72, Ord G, transcript, 25 August 2006, p 7.
[86]
Colman E, ‘Heavies weigh in to call for tax reform’ The Australian 21 April 2006, p 4.
[87]
Evans C, Tran-Nam B, ‘Towards systemic reform of the Australian personal
income tax: developing a sustainable model for the future’ Personal Income Tax
Reform Symposium (2007) Paper 3, p 3-25, viewed on 8 May 2007 at http://www.atax.unsw.edu.au/research/pitr-symposium-07/papers/Paper_03-Evans-Tran-Nam.pdf.
[88]
Clause 4.1 in the terms of reference.
[89]
Lateral Economics, Tax Cuts for Growth: The impact of marginal tax rates
on Australia’s labour supply, (2006) CEDA Information Paper 84, pp 1, 14.
[90]
Pedic F et al, Simplifying Income Tax: A Report on Forty Community
Consultations (2000) p 57, quoted in Evans C, ‘Diminishing returns: The
case for reduced annual filing for personal income taxpayers in Australia’ Australian
Tax Review (2004) vol 33, p 180.
[91]
Greco A, transcript, 28 July 2006, p 74.
[92]
Ibid, Baldry J, ‘Personal Income Tax Deductions in Australia, 1978-79 to 1990-91’ Economic Record (1994) vol 70, pp 424-33.
[93]
ATO, sub 50, p 20.
[94]
Ibid.
[95]
James B, transcript, 24 August 2007, p 49.
[96]
Culberg A, transcript, 24 August 2007, p 49.
[97]
ATO, Taxation Statistics 2005-06 (2008) Commonwealth of Australia, pp 18-20.
[98]
Evans C, ‘Diminishing returns: The case for reduced annual filing for
personal income taxpayers in Australia’ Australian Tax Review (2004) vol
33, p 176.
[99]
CPA Australia, sub 36, p 12.
[100]
Regulation Taskforce, Rethinking Regulation: Report of the Taskforce on
Reducing Regulatory Burdens on Business (2006) Commonwealth of Australia, p 112.
[101]
Ord G, transcript, 25 August 2006, pp 12-13.
[102]
Dirkis M, transcript, 28 July 2006, p 61, New Zealand Inland Revenue, ‘Fringe
benefit tax on specific categories of benefits’ viewed at http://www.ird.govt.nz/fbt/categories/
on 26 May 2008.
[103]
Stitt R, ‘GST and Financial Services,’ Tax Specialist (2001) vol 4, p
236. The Committee understands that the current GST law is 490 pages long.
[104]
OECD, Tax Administration in OECD and Selected Non-OECD Countries: Comparative
Information Series (2006), October 2006, p 109, viewed on 31 January 2007 at http://www.oecd.org/dataoecd/43/7/37610131.pdf. Generally, care must be
exercised in this type of comparison due to the differing functions of national
tax authorities. The New Zealand and Australian authorities, however, appear to
be sufficiently similar in their operations for this comparison to be useful.
[105]
PricewaterhouseCoopers, The World Bank, Paying Taxes: The global picture (2006)
PricewaterhouseCoopers, p 16, viewed on 31 January 2007 at http://www.doingbusiness.org/documents/DB_Paying_Taxes.pdf.
Chapter 4 Rulings
[1]
Discussion derived from ANAO, The Australian Taxation Office’s
Administration of Taxation Rulings, Audit Report No. 3 2001-02, 17 July 2001, pp 173-201.
[2]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 98.
[3]
ATO, ‘IT 2616, Income tax: Self-assessment – Questions concerning
taxpayers liability to tax – Subsection 169A(2) requests’ viewed on 14 May 2007 at http://law.ato.gov.au/atolaw/view.htm?locid='ITR/IT2616/NAT/ATO'&PiT=99991231235958.
[4]
Section 169A covered completed transactions.
[5]
ATO,’IT 2500, Taxation ruling system: Policy governing issue of income
tax rulings: Status of rulings: Advance opinions’ viewed on 14 May 2007 at http://law.ato.gov.au/atolaw/view.htm?locid='ITR/IT2500/NAT/ATO'&PiT=19940616000001.
[6]
(1990) 12 ATR 1506.
[7]
(1976) 140 CLR 247.
[8]
Cooper G et al, Cooper Krever & Vann’s Income Taxation: Commentary
and Materials (2005) Thomson, 5th Edition, p 885.
[9]
House of Representatives Standing Committee on Employment, Education and
Workplace Relations, Employee Share Ownership in Australian Enterprises,
D’Ascenzo M, transcript, 11 May 2000, p 350.
[10]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 95-121.
[11]
ATO, ‘Final Report on the Implementation of the Recommendations of Report
326 ”An Assessment of Tax’”, Correspondence, 20 October 1998.
[12]
Review of Business Taxation, A tax system redesigned (1999)
Commonwealth of Australia, pp 137-45.
[13]
ANAO, The Australian Taxation Office’s Administration of Taxation
Rulings, Audit Report No. 3 2001-02, 17 July 2001, pp 16-17.
[14]
ANAO, Administration of Taxation Rulings Follow-up Audit, Audit
Report No. 7 2004-05, 9 August 2004, p 10.
[15]
ATO, ‘What is a class ruling?’ viewed on 16 May 2007 at http://www.ato.gov.au/businesses/content.asp?doc=/content/34038.htm&page=1&H1=&pc=&mnu=4280&mfp=001&st=&cy=.
[16]
Scolaro D, ‘Tax Rulings: Opinion or Law? The Need for an Independent
‘Rule-Maker’’ (2006) Revenue Law Journal, vol 16, pp 119-20, Corporate
Tax Association and Ernst & Young, RoSA submission 27, p 17, viewed on 9
May 2007 at http://selfassessment.treasury.gov.au/content/_download/Submissions/27_cta_ey.pdf.
[17]
[2003] FCA 1428.
[18]
In section 284-15, the list of authorities operates without limitation. In
section 222C, the authorities include those listed. Both sections list the same
authorities.
[19]
Walstern v FCT [2003] FCA 1428, para 112.
[20]
Hon P Costello MP, Treasurer, ‘Outcome of the review of aspects of income
tax self assessment’, press release, 16 December 2004, viewed on 15 May 2007 at http://www.treasurer.gov.au/tsr/content/pressreleases/2004/106.asp.
[21]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 10.
[22]
Id, pp 11-26.
[23]
Id, p 23.
[24]
Figures do not add up to 100 due to rounding.
[25]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, pp 17-18.
[26]
Inspector-General of Taxation, Review of the potential revenue bias in
private binding rulings involving large complex matters (2008) Commonwealth
of Australia, pp 3-4.
[27]
Id, pp 124-126.
[28]
OECD, Tax Administration in OECD and Selected Non-OECD Countries:
Comparative Information Series (2006), October 2006, p 87, viewed on 31 January 2007 at http://www.oecd.org/dataoecd/43/7/37610131.pdf.
[29]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 3.
[30]
Inspector-General of Taxation, sub 48, p 5.
[31]
ATO, Annual Report 2006-07, p 96.
[32]
ICAA, sub 37, p 8.
[33]
CPA Australia, sub 36.1, p 1.
[34]
ICAA, sub 37, p 5.
[35]
ATO, Annual Report 2004-05, p 65, ATO, Annual Report 2005-06,
pp 111, 118, ATO, Annual Report 2006-07, pp 96, 112.
[36]
ATO, sub 50, p 35.
[37]
CPA Australia, sub 36, p 7.
[38]
ICAA, sub 37, pp 63-65.
[39]
Ibid.
[40]
Ibid.
[41]
Commonwealth Ombudsman, sub 38, p 10.
[42]
Drum P, transcript, 28 July 2006, p 36.
[43]
Leighton C, transcript, 24 August 2006, p 23.
[44]
Commonwealth Ombudsman, sub 38, p 10, ICAA, sub 37, p 8, CPA Australia, sub
36, p 7, Taxation Institute of Australia, sub 40.1, p 4, National Institute of
Accountants, sub 31, p 4.
[45]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 18.
[46]
Greco A, transcript, 25 August 2006, p 17.
[47]
Taxation Institute of Australia, sub 40.1, pp 4-5.
[48]
ICAA, sub 37, p 9.
[49]
ICAA, sub 37, p 9, Taxation Institute of Australia, sub 40.1, p 5.
[50]
ATO, ‘Priority Private Binding Rulings’, PS LA 2005/10, viewed on 22 May 2007 at http://law.ato.gov.au/atolaw/view.htm?Docid=PSR/PS200510/NAT/ATO/00001.
[51]
Section 359-50 of the Taxation Administration Act 1953.
[52]
ICAA, sub 37, p 9.
[53]
ICAA, sub 37, p 9.
[54]
ATO, ‘Our service standards’ viewed on 22 May 2007 at http://www.ato.gov.au/corporate/content.asp?doc=/content/25940.htm.
[55]
ATO, Annual Report 2006-07, p 40.
[56]
Ord G, transcript, 25 August 2006, p 5.
[57]
ICAA, sub 37, p 9.
[58]
ANAO, The Australian Taxation Office’s Administration of Taxation
Rulings, Audit Report No. 3 2001-02, 17 July 2001, pp 150, 154.
[59]
ANAO, Administration of Taxation Rulings Follow-up Audit, Audit
Report No. 7 2004-05, 9 August 2004, p 41.
[60]
Inspector-General of Taxation Review of the potential bias in private
binding rulings involving large complex matters (2008) Commonwealth of
Australia, p 5.
[61]
Inspector-General of Taxation, Review of the potential bias in private
binding rulings involving large complex matters (2008) Commonwealth of
Australia, pp 51-52, 126.
[62]
ANAO and Department of Finance and Administration, Better Practice
Guide: Better Practice in Annual Performance Reporting (2004) Commonwealth
of Australia, p 10.
[63]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 18.
[64]
The sample period for large business was 1993 to 2000. ANAO, The
Australian Taxation Office’s Administration of Taxation Rulings, Audit
Report No. 3 2001-02, 17 July 2001, pp 151-52.
[65]
ATO, Annual Report 2006-07, p 112.
[66]
ATO, Annual Report 2006-07, p 112, ATO, Annual Report 2005-06,
p 118.
Chapter 5 Compliance
[1]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
transcript, 20 April 2007, p 4.
[2]
Commonwealth Ombudsman, sub 38, p 5.
[3]
ATO, ‘Compliance model’ viewed on 15 August 2007 at http://www.ato.gov.au/corporate/content.asp?doc=/content/5704.htm.
[4]
Drummond M, ‘Tax havens thrive despite crackdown’ Australian Financial
Review 16 August 2007, p 61.
[5]
O’Toole C, ‘Tax chief says blitz is paying off’ Australian Financial
Review 24 August 2007, p 32.
[6]
D’Ascenzo M, transcript, 22 June 2006, p 17.
[7]
ATO, sub 50, p 1.
[8]
First biannual meeting with the Commissioner of Taxation, Granger J, 20 April 2007, p 13.
[9]
Commonwealth Ombudsman, sub 38, p 7.
[10]
See for example the Inspector-General of Taxation’s concerns about the ATO
using a ‘one size fits all’ approach to investors in mass-marketed investment
schemes, Inspector-General of Taxation, sub 48, p 12.
[11]
Inspector-General of Taxation, sub 48, p 9.
[12]
D’Ascenzo M, transcript, 22 June 2006, p 19.
[13]
McKenzie I, transcript, 28 July 2006, p 46.
[14]
Id, p 47.
[15]
Anderson F, ‘Tax agents told to ditch dodgy clients’ Australian
Financial Review, 10 October 2007, p 17.
[16]
ATO, sub 50, p 38.
[17]
McKenzie I, transcript, 28 July 2006, p 48.
[18]
[2002] FCA 1577.
[19]
Id, paras 5, 11.
[20]
Id, paras 6, 7.
[21]
Now a High Court Justice.
[22]
Essenbourne v Commissioner of Taxation [2002] FCA 1577, para 36.
[23]
Id, paras 54, 56.
[24]
ATO, ‘Employee benefit arrangements,’ Media release Nat 03/30, viewed on 20 August 2007 at http://www.ato.gov.au/corporate/content.asp?doc=/content/mr2003030.htm.
[25]
[2003] FCA 1428, para 87.
[26]
Commissioner of Taxation v Indooroopilly [2007] FCAFC 16, para 45.
[27]
Sackville J, [2004] FCAFC 339, paras 111-12.
[28]
The ATO funded Indooroopilly from its test case program.
[29]
Edmonds J, [2007] FCAFC 16, paras 35-39.
[30]
Id, paras 3-7, 44-47.
[31]
Id, para 3.
[32]
Kazi E, ‘ATO drops aggressive legal tactics’ Australian Financial Review,
6 March 2007, p 1.
[33]
Aronson M, Dyer B, Groves M, Judicial Review of Administrative Action (2004)
Lawbook Co, 3rd Edition, p 782.
[34]
Id, pp 782, 788-89.
[35]
First biannual meeting with the Commissioner of Taxation, ATO, sub 3, pp
14, 48-54.
[36]
Inspector-General of Taxation, Review of Tax Office management of Part
IVC litigation (2006) Commonwealth of Australia, pp 249-50, 252-54.
[37]
Id, p 183.
[38]
First biannual meeting with the Commissioner of Taxation, ATO, sub 3, p 58.
[39]
First biannual meeting with the Commissioner of Taxation, ATO, sub 1, p 15.
[40]
French J in Hicks v Minister for Immigration and
Multicultural and Indigenous Affairs [2003] FCA 757,
para 76.
[41]
Kazi E, ‘ATO drops aggressive legal tactics’ Australian Financial Review,
6 March 2007, p 1.
[42]
Vos D, transcript, 9 November 2006, p 13.
[43]
McHugh J, ‘Tensions between the Executive and the Judiciary’ (2002)
Australian Bar Association Conference, quoted in Inspector-General of Taxation,
Review of Tax Office management of Part IVC litigation (2006)
Commonwealth of Australia, p 245.
[44]
First biannual meeting with the Commissioner of Taxation, D’Ascenzo M,
Quigley B, transcript, 20 April 2007, pp 12-13.
[45]
The Hon P Dutton MP, Assistant Treasurer, ‘Non-Forestry Managed Investment
Schemes,’ Media release, 6 February 2007, viewed on 19 May 2008 at http://www.treasurer.gov.au/DisplayDocs.aspx?doc=pressreleases/2007/007.htm&pageID=003&min=pcd&Year=&DocType=0.
[46]
Whyte J, ‘ATO takes axe to money trees,’ Australian Financial Review,
8 February 2007, p 25.
[47]
ATO, ‘Transitional arrangements for agribusiness managed investment
schemes,’ Media release 2007/09, viewed on 20 March 2008 at http://www.ato.gov.au/corporate/content.asp?doc=/content/00095911.htm.
[48]
(1978) 8 ATR 783.
[49]
Cooper G et al, Cooper Krever & Vann’s Income Taxation: Commentary
and Materials (2005) Thomson, 5th Edition, pp 395-97.
[50]
Discussion drawn from Inspector-General of Taxation, Review of Tax
Office’s management of complex issues – Case study on service entity
arrangements (2007) Commonwealth of Australia, pp 3-5.
[51]
Commonwealth Ombudsman, sub 38, p 5.
[52]
Granger J, D’Ascenzo M, transcript, 9 November 2006, pp 47-48.
[53]
Granger J, transcript, 9 November 2006, p 47.
[54]
ATO, sub 50, pp 32-33.
[55]
D’Ascenzo M, transcript, 22 June 2006, pp 16-17.
[56]
Senate Economics References Committee, Inquiry into Mass Marketed
Effective Schemes and Investor Protection, Interim Report (2001) p 6.
[57]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, pp 27-28.
[58]
Treasury, Review of Unlimited Amendment Periods in the Income Tax Laws (2007)
Discussion Paper, Commonwealth of Australia, pp 9-15.
[59]
Comparing the income figures on a taxpayer’s return with those provided by
third parties such as banks.
[60]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, pp 29-30, ANAO, The Australian Taxation
Office's Use of Data Matching and Analytics in Tax Administration, Audit
Report No. 30 2007-08, 24 April 2008, pp 17-18.
[61]
Treasury, Review of Unlimited Amendment Periods in the Income Tax Laws (2007)
Discussion Paper, Commonwealth of Australia, p 7.
[62]
Anderson F, ‘ATO may face deadlines for tax audits,’ Australian
Financial Review 23 August 2007, p 3.
[63]
ATO, sub 50, p 45. See also section 284-225 of the Taxation
Administration Act 1953.
[64]
Inspector-General of Taxation, Review into Tax
Office audit timeframes (2005) Commonwealth of Australia, p 27.
[65]
Id, pp 26, 29.
[66]
Inspector-General of Taxation, Review into the Tax Office’s Administration
of Penalties and Interest Arising from Active Compliance Activities (2005)
Commonwealth of Australia, p 36.
[67]
ICAA, sub 37, p 4.
[68]
Taxation Institute of Australia, sub 40, p 7.
[69]
ATO, ‘Employee benefit arrangements,’ Media release Nat 03/30, viewed on 20 August 2007 at http://www.ato.gov.au/corporate/content.asp?doc=/content/mr2003030.htm.
[70]
[2004] FCAFC 339, para 111.
[71]
Panek P, sub 17, p 2, name withheld, sub 32, pp 6-7.
[72]
Applied Executives, sub 55, p 1.
[73]
Martin S, transcript, 22 June 2006, p 48.
[74]
ATO, sub 50.1, p 11.
[75]
Edmonds J, Commissioner of Taxation v Indooroopilly [2007] FCAFC 16,
para 39.
[76]
ATO, ‘ATO Receivables Policy, Part B, The Collection of Taxation Debts,’
paras 25.1-25.5, viewed at http://law.ato.gov.au/atolaw/view.htm?DocID=RMP%2FRP0025
on 27 August 2007.
[77]
Resolution Group, sub 42, p 15.
[78]
Vos D, Inspector-General of Taxation, transcript, 28 July 2006, p 3.
[79]
ANAO, The Australian Taxation Office’s Administration of Taxation
Rulings, Audit Report No. 3 2001-02, 17 July 2001, p 95.
[80]
Vos D, Mihail T, ‘The Importance of Certainty and Fairness in a
Self-Assessing Environment,’ para 112, viewed at http://www.igt.gov.au/content/media/sp20060420.asp
on 20 August 2007.
[81]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, pp 17-18.
[82]
Inspector-General of Taxation, Review of the potential revenue bias in
private binding rulings involving large complex matters (2008) Commonwealth
of Australia, pp 3-8, 125.
[83]
ANAO, The Australian Taxation Office’s Administration of Taxation
Rulings, Audit Report No. 3 2001-02, 17 July 2001, pp 95-96.
[84]
McMillan J, transcript, 28 July 2006, p 25.
[85]
Kazi E, ‘ATO drops aggressive legal tactics’ Australian Financial Review,
6 March 2007, p 6.
[86]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, p 284.
[87]
ATO, Annual Report 2006-07, p 42.
[88]
ATO, sub 50, p 1.
[89]
ATO, Taxpayers’ Charter – Expanded Version (2007) Commonwealth of Australia, p 3.
[90]
ANAO, Taxpayers’ Charter, Audit Report No. 19 2004-05, 17 December 2004, pp 64-66.
[91]
ANAO, Taxpayers’ Charter – Follow-up Audit, Audit Report No. 40
2007-08, 11 June 2008, pp 53-55.
Chapter 6 Penalties and interest
[1]
Division 288 in Schedule 1 to the Taxation Administration Act 1953,
ATO, sub 50, p 46.
[2]
ATO, sub 50, p 44.
[3]
ATO, sub 50, p 45. See also section 284-220 in Schedule 1 to the Taxation
Administration Act 1953.
[4]
ATO, sub 50, p 45. See also section 284-225 in Schedule 1 to the Taxation
Administration Act 1953.
[5]
Section 4AA of the Crimes Act 1914.
[6]
ATO, sub 50, p 45. See also section 286-80 of the Taxation
Administration Act 1953.
[7]
ATO, sub 50, p 45.
[8]
Commonwealth Ombudsman, sub 38, p 15.
[9]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 44.
[10]
CPA Australia, sub 36, p 15.
[11]
ANAO, The Management of Tax Debt Collection, Audit Report No. 23
1999-2000, 20 December 1999, p 74.
[12]
ANAO, Administration of Tax Penalties, Audit Report No. 31
1999-2000, 16 February 2000, p 11.
[13]
Id, p 15.
[14]
Inspector-General of Taxation, Review into the Tax Office’s
Administration of Penalties and Interest Arising from Active Compliance
Activities (2005) Commonwealth of Australia, pp 4-5.
[15]
Id, pp 5, 7, 36-37.
[16]
Taxation Institute of Australia, sub 40, p 9.
[17]
ICAA, sub 37, p 12.
[18]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian
Taxation Office (1993) Report 326, pp 299-300.
[19]
ATO, ‘Final Report on the Implementation of the Recommendations of Report 326”An
Assessment of Tax’”, correspondence, 20 October 1998.
[20]
ATO, Annual Report 2006-07, p 42.
[21]
First biannual meeting with the Commissioner of Taxation, ATO, sub 3, p 21.
[22]
ATO, Annual Report 2006-07, p 42.
[23]
Inspector-General of Taxation, Review of the Tax Office’s Administration
of GST audits for Large Taxpayers (2008) Commonwealth of Australia, p 5.
[24]
Treasury, sub 51, p 10, section 298-25 in Schedule 1 to
the Taxation Administration Act 1953.
[25]
Ibid.
[26]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, p 50.
[27]
ATO, ‘General interest charge (GIC) rates,’ viewed on 18 March 2008 at http://www.ato.gov.au/taxprofessionals/content.asp?doc=/content/2832.htm&mnu=4823&mfp=001/005.
[28]
Section 8AAD of the Taxation Administration Act 1953.
[29]
Section 280-100 in Schedule 1 to the Taxation Administration Act 1953,
ATO, sub 50, p 47.
[30]
ATO, RoSA in brief – Shortfall interest charge (2007)
Commonwealth of Australia, p 4.
[31]
Treasury, Report on aspects of income tax self assessment (2004)
Commonwealth of Australia, pp 51-54.
[32]
Id, pp 53-54, Treasury, sub 51, p 11.
[33]
Treasury, sub 51, p 11.
[34]
National Institute of Accountants, sub 31, p 6.
[35]
Australian bills rate was approximately 5.5% in 2006, see Treasury, sub 51,
p 10. Canadian bill rate in 2006 was approximately 4%, Bank of Canada, ‘Treasury
Bill Auction - Average Yields - 3 Month,’ viewed at http://www.bankofcanada.ca/pdf/annual_page3_page4.pdf
on 1 June 2007.
[36]
National Institute of Accountants, sub 31, p 6.
[37]
Ibid.
[38]
Treasury, sub 51, p 10.
[39]
D’Ascenzo M, transcript, 20 April 2007, p 6.
[40]
Konza M, transcript, 20 April 2007, p 6.
[41]
ATO, ‘Administration of shortfall penalty for false or misleading
statement,’ PS LA 2006/2, paras 136-58, viewed on 4 June 2007 at http://law.ato.gov.au/atolaw/print.htm?DocID=PSR%2FPS20062%2FNAT%2FATO%2F00001&PiT=99991231235958.
[42]
ATO, ‘ATO Receivables Policy, Part F, Penalties and interest relating to receivables
activities, Lodgment penalty,’ paras 98.4.16-98.4.23, viewed on 4 June 2007 at http://law.ato.gov.au/atolaw/view.htm?DocID=RMP%2FRP0098.
[43]
Section 280-160 in Schedule 1 to the Taxation Administration Act 1953.
[44]
ATO, Remission of shortfall interest charge and general interest charge
for shortfall periods, PS LA 2006/8, pp 9-13.
[45]
Id, pp 8, 18.
[46]
Id, pp 19-21.
[47]
The ATO has made allowance for taxpayers and tax agents affected by the Hunter Valley and Central Coast floods in June 2007. See ATO, ‘Tax help for people affected
by the NSW floods,’ Media release 2007/25, viewed on 15 June 2007 at http://www.ato.gov.au/corporate/content.asp?doc=/content/85462.htm.
[48]
ATO, ‘ATO Receivables Policy, Part F, Penalties and interest relating to receivables
activities, General interest charge,’ paras 93.5.6- 93.5.24, viewed on 5 June 2007 at http://law.ato.gov.au/atolaw/view.htm?DocID=RMP%2FRP0093
[49]
Id, paras 93.6.2, 93.6.7.
[50]
Inspector-General of Taxation, Review of the Remission of the General
Interest Charge for Groups of Taxpayers in Dispute with the Tax Office (2004)
Commonwealth of Australia, pp 6-10.
[51]
Id, pp 68-69.
[52]
Commonwealth Ombudsman, sub 38, p 14.
[53]
ICAA, sub 37, p 14.
[54]
Inspector-General of Taxation, sub 48, p 14.
[55]
ANAO, The ATO’s Management of Aggressive Tax Planning, Audit Report
No. 23 2003-04, 29 January 2004, p 102.
[56]
Section 44 of the Financial Management and Accountability Act 1997 requires
chief executives to use agency resources in an efficient, effective and ethical
manner.
[57]
ATO, Annual Report 2006-07, p 113.
[58]
Id, p 114.
[59]
Ibid.
[60]
JCPA, An Assessment of Tax: A Report on an Inquiry into the Australian Taxation
Office (1993) Report 326, p 280.
[61]
Id, pp 281-82.
[62]
ATO, ‘Final Report on the Implementation of the Recommendations of Report 326”An
Assessment of Tax’”, correspondence, 20 October 1998.
[63]
Senate Economics References Committee, Operation of the ATO (2000) p
xiv.
[64]
Id, p 75.
[65]
‘Government Responses to Committee Reports,’ tabled by the Hon Senator Vanstone, Senate Hansard, 7 December 2006, p 113.
[66]
Senate Economics References Committee, Operation of the ATO (2000) p
71.
[67]
ATO, ‘Code of Settlement Practice,’ Background, viewed on 26 February 2007 at http://www.ato.gov.au/print.asp?doc=/content/8249.htm.
[68]
Id, para 26.
[69]
Id, para 25.
[70]
Id, para 6.
[71]
Id, Background.
[72]
ATO, ‘Guidelines for settlement of widely-based tax disputes,’ PS LA 2007/6,
para 3, viewed on 26 February 2007 at http://law.ato.gov.au/atolaw/view.htm?DocID=PSR/PS20076/NAT/ATO/00001&PiT=99991231235958.
[73]
Id, paras 6, 8, 28, 32.
[74]
Id, paras 23-26.
[75]
Id, para 40.
[76]
Sheppard, Foster and Whitlam JJ, Grofam Pty Ltd v FCT [1997] 660 FCA
(26 March 1997) viewed at http://www.austlii.edu.au/au/cases/cth/federal_ct/1997/660.html
on 15 June 2007.
[77]
Commonwealth Ombudsman, sub 38, p 12.
[78]
National Institute of Accountants, sub 31, p 7, name suppressed, sub 32, p
1, ICAA, sub 37, p 14, Resolution Group, sub 42, p 16. In 2007, the ATO
settled a $515 million case with Rio Tinto for one third of the ATO’s initial
claim: Kazi E, ‘ATO repays $42 million in tax to Rio Tinto,’ Australian
Financial Review, 15 June 2007, p 33.
[79]
Seage C, sub 23, pp 2-6, ICAA, sub 37, p 14, Resolution Group, sub 42, p
16, Robinson D, sub 45, p 2, Fitton R, sub 53, pp 1-2.
[80]
ICAA, sub 37, p 14.
[81]
Commonwealth Ombudsman, sub 38, p 12.
[82]
ATO, Annual Report 2006-07, p 114.
[83]
Senate Economics References Committee, Operation of the ATO (2000)
pp xiv-xv.
[84]
ATO, ‘Code of Settlement Practice,’ para 6, viewed on 26 February 2007 at http://www.ato.gov.au/print.asp?doc=/content/8249.htm.
[85]
ANAO, Administration of Tax Penalties, Audit Report No. 31
1999-2000, 16 February 2000, p 21.
[86]
ATO, Annual Report 2006-07, p 332.
Chapter 7 Pay as you go and common standards of practice
[1]
Treasury, sub 51, p 12.
[2]
Joint Committee of Public Accounts, An Assessment of Tax: A Report on
an Inquiry into the Australian Taxation Office (1993) Report 326, p 206.
[3]
Id, p 12.
[4]
Id, p 13.
[5]
Discussion on PAYG withholding and instalments derived from Cooper G et
al, Cooper, Krever & Vann’s Income Taxation, Commentary and Materials (2005)
Thomson, pp 867-75.
[6]
ATO, ‘Income tax: Pay As You Go - withholding from
payments to employees,’ TR 2005/15, viewed on 18 June 2007 at http://law.ato.gov.au/atolaw/view.htm?docid=TXR/TR200516/NAT/ATO/00001.
[7]
ATO, sub 50.3, p 18.
[8]
Section 4AA of the Crimes Act 1914 sets the amount of a penalty
unit at $110.
[9]
Section 16-75 in Schedule 1 to the Taxation Administration Act 1953.
Although the legislation refers to the size of the withholding amounts, rather
than the number of employees, the two will usually be closely correlated.
[10]
ATO, sub 50, p 57.
[11]
ATO, ‘PAYG withholding – varying your PAYG withholding, Downwards
variations,’ viewed on 27 June 2007 at http://www.ato.gov.au/businesses/content.asp?doc=/content/00096541.htm&page=3&H3=&pc=001/003/024/002/010&mnu=9898&mfp=001&st=&cy=1.
[12]
Ibid.
[13]
Section 45-25 in Schedule 1 to the Taxation Administration Act 1953.
[14]
ATO, sub 50.4, pp 4-5.
[15]
Deutsch R et al, Australian Tax Handbook 2007 (2007) Thomson, pp
1753-54.
[16]
Id, p 1,747.
[17]
Id, p 1,759.
[18]
Sections 45-115, 45-205, 45-210, Subdivision 45G in Schedule 1 to the Taxation
Administration Act 1953. Arguably, varying the payment amounts constitutes
a third method of calculating PAYG instalments.
[19]
Cantamessa S, transcript, 28 July 2006, p 68.
[20]
Inspector-General of Taxation, sub 48, p 15, CPA Australia, sub 36, p 16.
[21]
ATO, Annual Report 2006-07, p 21, ATO, Annual Report 2004-05,
p 39.
[22]
ATO, sub 50.3, pp 18-19.
[23]
ATO, sub 50.3, p 18.
[24]
Ibid.
[25]
ATO, sub 50.3, p 20.
[26]
ANAO, Management of Family Tax Benefit Overpayments, Audit Report
No. 12 2006-07, 28 November 2006, pp 13-16, 39, Department of Family and
Community Services, ‘Annual Report 2000-01, Output Group 1.1: Family
Assistance,’ viewed on 26 June 2007 at http://www.facsia.gov.au/annualreport/2001/2/1/1.1.html.
[27]
Dunlevy S, ‘Catch 22 debt trap snaps shut,’ Daily Telegraph, 19
February 2003, p 21.
[28]
ANAO, Management of Family Tax Benefit Overpayments, Audit Report
No. 12 2006-07, 28 November 2006, p 21.
[29]
Gittins R, ‘Our nanny state’s bright idea: ban the light bulb’ Sydney
Morning Herald, 26 February 2007, p 21.
[30]
Granger J, transcript, 22 June 2006, p 12.
[31]
Coleman C, ‘Tax refund versus tax return?’ Atax UNSW, Personal Income Tax
Reform Symposium, April 2007, p 10, viewed on 8 May 2007 at http://www.atax.unsw.edu.au/research/pitr-symposium-07/papers/Paper_13-Coleman.pdf.
[32]
Id, p 11.
[33]
Treasury, sub 51, p 15, Reserve Bank of Australia, ‘Interest Rates &
Yields: Money Market & Commonwealth Government Securities,’ viewed on 19 March 2007 at http://www.rba.gov.au/Statistics/HistoricalInterestRatesYields/2008.xls.
[34]
Treasury, sub 51, p 15.
[35]
Treasury, sub 51, p 15.
[36]
Section 204 of the Income Tax Assessment Act 1936.
[37]
CPA Australia, sub 36, p 16.
[38]
ATO, Annual Report 2006-07, p 39.
[39]
Inspector-General of Taxation, sub 48, p 15.
[40]
ANAO, The Management of Tax Debt Collection, Audit Report No. 23
1999-2000, 20 December 1999, p 41.
[41]
This equates to taxpayers lodging their returns six months after the end of
the financial year. It is assumed that taxpayers overpay evenly throughout the
financial year. In effect, this means that they make a single overpayment half
way through the financial year in question.
[42]
Ord G, transcript, 25 August 2006, p 8.
[43]
ANAO, The Management of Tax Debt Collection, Audit Report No. 23
1999-2000, 20 December 1999, p 42, ANAO, The ATO’s Administration of Debt
Collection – Micro-business, Audit Report No. 42 2006-07, 12 June 2007, p
41. The ATO defines a micro-business as having an annual turnover of less than
$2 million (p 11 of the micro-business report).
[44]
Taxation Institute of Australia, sub 40, pp 7-8, Resolution Group, sub 42,
pp 11-15, Inspector-General of Taxation, sub 48, pp 12-14.
[45]
CPA Australia, sub 36, p 14, Institute of Chartered Accountants in Australia, sub 37, p 3, National Institute of Accountants, sub 31, p 6.
[46]
CPA Australia, sub 36, p 14.
[47]
Wright I, transcript, 24 August 2006, p 22.
[48]
Senate Standing Committee on Economics, Budget Estimates, D’Ascenzo M,
transcript, 29 May 2007, p 42.
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