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Legislative Assembly for the ACT: 1997 Week 4 Hansard (8 May) . . Page.. 1105 ..
(Quorum formed)
MR SPEAKER (Mr Cornwell) took the chair and asked members to stand in silence and pray or reflect on their responsibilities to the people of the Australian Capital Territory.
MRS CARNELL (Chief Minister and Treasurer) (10.33): Mr Speaker, I present the Taxation (Administration) (Amendment) Bill 1997, together with its explanatory memorandum.
Title read by Clerk.
MRS CARNELL: I move:
That this Bill be agreed to in principle.
This Bill provides for amendment of the Taxation (Administration) Act 1987 to tighten and improve the refund or recovery of revenue provisions contained in sections 95B to 95E of the Taxation (Administration) Act 1987. Business franchise fees are frequently under challenge in one form or another on the basis that the fees are a duty of excise and State and Territory legislatures have no power to impose such duties under the Australian Constitution. So far, the High Court has held that, as long as the fee charged is a regulatory one and is not a direct fee for the trading in goods, it is not an excise. However, for how long this position will be held is unknown, and it is therefore a constant cause of concern in respect of State and Territory revenue collection agencies.
The refund or recovery of revenue provisions were introduced in an attempt to prevent revenue legitimately collected by tax, duty or licence fee from having to be refunded, following an adverse decision by the High Court or another court on the validity of the tax law, or where an amount refunded is not returned to the person bearing the incidence of the tax. Section 95C provides that the Commissioner for ACT Revenue is not to refund a revenue amount unless the person claiming the refund satisfies the commissioner that the tax, duty or licence fee was not passed on to another person or, if it was passed on, the claimant has repaid the amount passed on. The effect of this provision is to prevent a taxpayer from receiving a windfall gain at the expense of those persons to whom the incidence of the tax was passed on.
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