Mr FITZGIBBON (2:28 PM) —My question is also to the Treasurer. I refer him to the AWB’s $290 million kickback to the former Iraqi regime, a payment which was claimed as a tax deduction on his watch, and therefore was subsidised by the taxpayer to the tune of some $90 million. Is the Treasurer aware that, despite the fact that the taxation commissioner has now backed Labor’s claim that the tax act is in need of amendment, his Assistant Treasurer rejected Labor’s amendment to align the tax act with the Criminal Code when I moved it in this place on 27 February? Treasurer, will you now adopt Labor’s plan to ensure that no AWB style bribes can be claimed as a tax deduction in the future, or will you continue to support taxpayer subsidies for illegal bribes?

Mr COSTELLO (Treasurer) —I thank the honourable member for his question. Of course, he completely misrepresents the Assistant Treasurer, as per usual. I completely repudiate what he said about the Assistant Treasurer. Can I also refer the honourable member to section 26-52 of the Income Tax Assessment Act 1997, which provides as follows:

It is quite specific. If anybody has attempted to deduct a bribe to a foreign official, it is in breach of section 26-52(1). The Commissioner of Taxation, who enforces the law, has the power to adjust any such tax and to impose penalties and an interest payment in relation to that. The Commissioner of Taxation has full power in relation to this matter. The question, unfortunately, is based on a false premise. I have full confidence in the Commissioner of Taxation to enforce the provisions of the Income Tax Assessment Act.