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TAXATION (UNPAID COMPANY TAX) ASSESSMENT BILL 1982

Order of the Day read for the adjourned debate on the Question-That this Bill be now read a second time-And on the amendment moved thereto by Senator Walsh, viz: At end of motion, add '', but the Senate: (a) condemns the abject failure of the Treasurer and the Government, knowing of the existence of straw company tax evasion schemes since at least 1978, to respond quickly and effectively to the massive tax evasion occurring through the use of such schemes;

(b) is of the opinion that the Bill is grossly inadequate in that it: (i) deals with company and undistributed profits tax remaining unpaid on current and prior year profits and does not recoup personal income tax lost in relation to accumulated after-tax profits disposed of by vendor shareholders in the same transactions,

(ii) fails to recoup sales tax evaded by the use of straw companies,

(iii) allows for non-recovery of a substantial proportion of the company and undistributed profits tax lost by use of the scheme because of the deliberate exclusion of an important category of use of the scheme, and

(iv) provides for more leniency to tax evaders in respect of the time allowed to pay their assessed tax irrespective of the degree of hardship being experienced;

(c) notes that because of the Bill's deficiencies the sum to be recouped will be far less than that which has been lost through straw company tax evasion schemes ; and

(d) calls on the Government to amend the Bill and associated measures so as to ensure that all the tax lost through straw company schemes will be recouped''.

Debate resumed.

Senator Harradine moved an amendment to the proposed amendment, viz: Leave out paragraphs (b), (c) and (d).

Debate ensued.

Question-That the words proposed to be left out be left out (Senator Harradine's amendment)-put and negatived.

Question-That the words proposed to be added be added (Senator Walsh's amendment )-put.

The Senate divided-

AYES, 22

Senators- Bolkus Childs Coates Coleman Colston Elstob Evans Foreman Gietzelt Giles Grimes Hearn Jones Keeffe McIntosh McLaren Primmer Ray, Robert Ryan Sibraa Walsh Teller: Senator Robertson

NOES, 32

Senators- Archer Baume Bjelke-Petersen Carrick, Sir John Chaney Chipp Crichton-Browne Guilfoyle, Dame Margaret Haines Hamer Harradine Hill Jessop Kilgariff Lajovic Lewis MacGibbon Macklin Martyr Mason Messner Missen Scott Siddons Teague Thomas Townley Walters Watson Withers Young Teller: Senator Collard

Amendment negatived accordingly.

Question-That this Bill be now read a second time-put.

The Senate divided-

AYES, 45

Senators- Archer Baume Bolkus Carrick, Sir John Chaney Childs Coates Coleman Colston Elstob Evans Foreman Gietzelt Giles Grimes Guilfoyle, Dame Margaret Hamer Harradine Hearn Jessop Jones Keeffe Kilgariff Lajovic Lewis McClelland McIntosh McLaren Mason Messner Missen Primmer Ray, Robert Robertson Ryan Scott Sibraa Siddons Teague Townley Walsh Walters Watson Young Teller: Senator Collard

NOES, 10

Senators- Bjelke-Petersen Chipp Crichton-Browne Haines Hill MacGibbon Macklin Martyr Withers Teller: Senator Thomas

And so it was resolved in the affirmative.

Bill read a second time.

The Senate, according to Order, resolved itself into Committee for the consideration of the Bill.

In the Committee

Clauses 1 and 2, by leave, taken together and agreed to.

Clause 3 debated- Senator Walsh moved an amendment, viz: Pages 6 and 7, sub- clause (12), line 29 (page 6) to line 16 (page 7), leave out the sub-clause.

Debate ensued.

Question-That the words proposed to be left out be left out-put.

The Committee divided-

AYES, 25

Senators- Bolkus Button Childs Coates Coleman Colston Elstob Evans Foreman Gietzelt Giles Grimes Harradine Hearn Jones McClelland McIntosh McLaren Mason Primmer Ray, Robert Ryan Siddons Walsh Teller: Senator Sibraa

NOES, 29

Senators- Archer Baume Bjelke-Petersen Carrick, Sir John Chaney Chipp Collard Crichton-Browne Guilfoyle, Dame Margaret Haines Hamer Hill Jessop Lajovic Lewis MacGibbon Macklin Martyr Messner Missen Scott Teague Thomas Townley Walters Watson Withers Young Teller: Senator Kilgariff

And so it was negatived.

Clause 3 agreed to.

Clause 4 debated- Senator Walsh moved an amendment, viz: Page 8, after sub- clause (3), insert the following new sub-clause: ''(3A) A report of the Commissioner under section 14 of the Assessment Act may- (a) draw attention to the failure of a person to pay recoupment tax or late payment tax due and payable by the person; and

(b) disclose the identity of the person.''.

Debate ensued.

Question-That the words proposed to be inserted be inserted-put and negatived.

Clause 4 agreed to.

Clause 5 read- Senator MacGibbon, by leave, moved the following amendments together: Page 16, sub-clause (7), paragraph (c), sub-paragraph (ii), line 44, after ''expected'', insert ''by the person or persons who sold shares''.

Page 17, sub-clause (7), paragraph (c), sub-paragraph (iii), line 6, after '' expected'', insert ''by the person or persons who sold shares''.

Page 17, sub-clause (9), paragraph (c), lines 26 to 32, leave out the paragraph.

Debate ensued.

Question-That the amendments be agreed to-put.

The Committee divided-

AYES, 8

Senators- Bjelke-Petersen Crichton-Browne Jessop MacGibbon Martyr Townley Withers Teller: Senator Thomas

NOES, 47

Senators- Archer Baume Bolkus Button Carrick, Sir John Chaney Childs Chipp Coates Coleman Collard Colston Elstob Evans Foreman Gietzelt Giles Grimes Guilfoyle, Dame Margaret Haines Hamer Hearn Hill Jones Keeffe Kilgariff Lajovic Lewis McClelland McIntosh McLaren Macklin Mason Messner Missen Primmer Ray, Robert Ryan Scott Sibraa Siddons Teague Walsh Walters Watson Young Teller: Senator Robertson

Amendments negatived accordingly.

And it being after eleven p.m.: The Chairman of Committees (Senator McClelland), under Sessional Order, put the Question-That he do leave the Chair and report to the Senate.

Question-resolved in the affirmative.

The President resumed the Chair; and Senator McClelland reported accordingly.