Page 3094 - Week 08 - Tuesday, 14 August 2012
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Likewise, the Commissioner for ACT Revenue has been able to provide the ATO commissioner with taxpayer information obtained through the administration of the territory’s tax laws.
Recently, the ATO amended the commonwealth Taxation Administration Act 1953, and this amendment now prevents the ATO from legally providing any taxpayer information to the Commissioner for ACT Revenue. Also as a result of the commonwealth amendment, the ACT Revenue Office cannot provide data to the ATO. Whilst this ATO amendment only directly affects the ACT Revenue Office, other jurisdictions are involved. There is a sharing of information arrangement between revenue offices that is now restricted until the matter can be corrected.
This situation is potentially highly disruptive to ACT revenue collection and compliance activities. Compliance activities will continue to be negatively affected until a resolution can be reached.
The ACT Government Solicitor has recommended a minor amendment to the act to overcome this issue. It is preferable that the ACT amend its taxation law rather than the commonwealth. The ATO has advised that a minor amendment to the commonwealth legislation could take at least two years.
The Taxation Administration Act currently describes the Commissioner for ACT Revenue as a state taxation officer. In the previous version of the commonwealth act, the terms “state” and “territory” were interchangeable. The ACT act referenced a state taxation officer to align with the commonwealth act. Following changes by the ATO to the commonwealth act, this alignment no longer exists.
The amendment to the Taxation Administration Act will result in the Commissioner for ACT Revenue being referred to as a territory taxation officer. This alteration will legally allow the exchange of taxpayer information between the two offices. The ATO have confirmed that this amendment will allow them to disclose taxpayer information immediately to the ACT Revenue Office.
This simple alteration to the act will be beneficial to the ATO, other jurisdictions and the ACT Revenue Office. Data exchange helps ensure the collection of millions of dollars of revenue each year in the territory.
Although we could request that the commonwealth make a further change to their legislation, as I have indicated, this could take up to two years, and it seems a simpler and more prudent approach to make this simple change to the ACT legislation instead and to correct the issue as quickly as possible.
This amendment ensures continued compliance activity and revenue collection by the territory revenue office and therefore protects the ACT revenue base.
I commend the Taxation Administration Amendment Bill to the Assembly.
Debate (on motion by Mr Smyth) adjourned to the next sitting.
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