Page 3430 - Week 12 - Tuesday, 11 October 1994
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Madam Speaker, I think that the much narrower interpretation that Mr Kaine has been provided with is, as I said in my earlier remarks, not the entire picture. In fact, that four-year reference applies only to some specific circumstances, not to the general power of the Commonwealth in this tax Act. On the advice that I have, Mr Kaine, that four-year period applies and is able to be used only when the taxpayer has made a statement to the commissioner which has caused the commissioner to reduce an assessment. So, it is not a general provision.
Madam Speaker, I reiterate that the Government will be opposing Mr Kaine's amendment; but, as I have said, I am happy to keep this matter under review. I think it is a bit unfortunate that Mr Kaine has declined to talk to Treasury about this Bill. It is equally unfortunate that I do not have access to the comments from the Australian accounting societies that Mr Kaine has; so, we are not directly comparing each other's advice. Madam Speaker, I urge the Assembly to reject Mr Kaine's amendment.
MS SZUTY (8.22): Madam Speaker, I also have a copy of subsection 170(1) that the Chief Minister just quoted, which is the relevant section of the Commonwealth Act. On my reading of the provision, it is quite clear that it is open-ended. There is no four-year period specified in that provision. I am sure that that is the same advice that the Chief Minister has received. I would like to pick up a point that the Chief Minister made. She read from Part IV of the Commonwealth legislation, "Returns and Assessments", subsection 170(1), "Amendment of assessments". The Chief Minister also referred to the retention of records. At the moment, it is up to each taxpayer to retain their records for a period of six years. That seems to me to be a very sensible provision in the Bill. We are linking that six-year period in which the commissioner can amend assessments, if necessary, with the period for retention of records.
I would also like to mention fraud and evasion. I raised that matter when the Treasury officers briefed me on this Bill some weeks ago. The Commissioner for Revenue said to me that the commissioner would be able to detect fraud only in particular instances where the relevant documentation was retained by the taxpayer. So, the commissioner would have to have some basis on which to proceed if there were going to be amended assessments made in relation to some taxpayers' affairs. At this stage, on my assessment of the case presented by Mr Kaine in support of his amendment and of the Chief Minister's case in opposing the amendment, I indicate to the Assembly that I will be opposing the amendment moved by Mr Kaine.
Amendment negatived.
Bill, as a whole, agreed to.
Bill agreed to.
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