Terms of reference

Tax laws Amendment (Improvements to Self Assessment) Bill (No.1) 2005 and the Shortfall Interest Charge Interest Charge (Imposition) Bill 2005

Terms of reference

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On 11 May 2005 , the Senate referred the provisions of these bills to the Economics Legislation Committee for inquiry and report by 22 June 2005 . This package of bills make significant changes to the self assessment arrangements which underpin the Australian taxation system. They partially implement the Government's response to the recent Treasury Review of Aspects of Income Tax Self Assessment.

The Tax Laws Amendment (Improvements to Self Assessment) Bill (No. 1) 2005 (ISA bill) amends the Taxation Administration Act 1953 (TAA) to apply a new charge, the shortfall interest charge (SIC), to a taxpayer's under-assessment of income tax. The SIC replaces the existing general interest charge for under-assessments and is four percentage points lower than that charge. In addition, the ISA bill allows the Commissioner of Taxation to remit the SIC; requires the Commissioner to provide reasons for rejecting a remission request; and enables a taxpayer to appeal against the Commissioner's decision. The bill removes the penalty for failing to follow a private ruling; requires the Commissioner to supply reasons for a penalty and not remitting it in full; and clarifies when a statement by an entity about an income tax liability is reasonably arguable.

The Shortfall Interest Charge (Imposition) Bill 2005 (SICI bill) meets constitutional requirements by imposing the shortfall interest charge as a tax insofar as this might be necessary.

Written submissions are invited and should be sent to:

The Secretary,
Senate Economics Legislation Committee,
Suite SG.64,
Parliament House
Canberra ACT 2600.

The closing date for submissions is Friday, 27 May 2005 .

The Committee requests that where possible, submissions should also be provided by email to economics.sen@aph.gov.au, preferably as MS Word 97 or RTF format documents. Notes to assist in preparing submissions are available from the website https://www.aph.gov.au/senate/committee/wit_sub/index.htm or the Secretariat (ph: 02 6277 3540, fax: 02 6277 5719, e-mail economics.sen@aph.gov.au).

Once the Committee accepts your submission, it becomes a confidential committee document and is protected by Parliamentary Privilege. You must not release your submission without the Committee’s permission. If you do, it is not protected by Parliamentary Privilege. At some stage during the inquiry, the Committee normally makes submissions public. Please indicate if you want your submission to be kept confidential.

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If you need any further information, contact Mr Peter Hallahan , Committee Secretary, on (02) 6277 3540 (phone), (02) 6277 5719 (fax) or by email to economics.sen@aph.gov.au.

For further information, contact:

Committee Secretary
Senate Standing Committees on Economics
PO Box 6100
Parliament House
Canberra ACT 2600

Phone: +61 2 6277 3540
Fax: +61 2 6277 5719
Email: economics.sen@aph.gov.au