Ms Jann McFarlane asked the Treasurer, upon notice, on 15 May 2002:

(1) Was the recent offer letter from the Australian Tax Office (ATO) to investors in Mass Marketed Tax Effective schemes entitled `Settlement opportunity including a remission of penalties and interest' sent to all investors who had received an amended assessment due to an involvement in a mass marketed tax effective scheme.

(2) Was the letter a form letter with the only difference being the address and the name of the investment after the word INCOME TAX: in the title.

(3) Were investors provided with the details of their own specific situation prior to signing the Eligible Taxpayer Declaration, Settlement Schedule No. 1 and Cash Payment Settlement Schedule No. 2; if not, why not; if so, in what form did this information come.

(4) Should the ATO provide this offer when only one test case has been heard in the court.

(5) What is the expected revenue forecast by the ATO in relation to investors accepting this offer.

(6) Will the Minister call upon the ATO to extend this offer past 29 May 2002 to allow investors involved in test cases natural justice.

Mr Costello (Treasurer) —The answer to the honourable member's question is as follows:

(1) The letter referred to was sent to all mass marketed scheme investors in the schemes considered eligible for the Com-missioner of Taxation's settlement proposal. These schemes are listed on the Tax Office website, www.ato.gov.au/atp.

(2) The letter contained consistent information, however it was tailored to reflect the arrangements in different schemes.

(3) Investors have been provided with individual Fact Sheets for each scheme and a calculator which enables them to calculate the difference the settlement would make to their scheme debt. They have also been provided with a considerable amount of information through a series of individual letters. If investors need further assistance they have been provided with a Helpline 1800 177 006 which is staffed by officers who have specific knowledge of the scheme arrangements.

(4) The hearing of the test case was not relevant to the decision to make the settlement proposal. The Commissioner accepted three key recommendations of the Senate Economics References Committee Inquiry into Mass Marketed Schemes and Investor Protection concerning the settlement.

Two cases have been decided by the Federal Court since the proposal was made. In both cases the Court found in favour of the Commissioner.

(5) The Commissioner's Press Release of 14 February 2002 states `...this offer would have little material impact on the Government's revenue forecasts, at least over the next few years.'

(6) The Commissioner announced on 27 May 2002 that he would extend the offer until 21 June 2002.