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Wednesday, 11 November 1964


Senator WRIGHT (Tasmania) .- I rise only to put on record the notice I take of the unity of purpose between the Minister for Civil Aviation (Senator Henty) and the Leader of the Opposition (Senator McKenna) on this matter. When I get to that stage it gives me greater disquiet with regard to the purposes of the legislation that the Treasurer (Mr. Harold Holt) has put before us. I have no full confidence in the political purposes of the Leader of the Opposition and my confidence does not grow when I find him submitting an argument in opposition to his own colleague, Senator Murphy, who stressed to us before the sitting was suspended that tax avoidance was the right of anyone. It was tax evasion that was to be destroyed, he said. But now the Leader of the Opposition has come along with the proposition that it is tax avoidance that he is out to stop. I wanted to test it and therefore I put the language I did into the amendment hoping that the Leader of the Opposition would support the protection I seek to give to any trust that can be described as a bona fide transaction without any intent to avoid income tax.

Those who deny the need for this amendment say, in effect, that they want to impose a tax of 10s. in the £1 on any' trust income from a transaction creating a trust that is bona fide without intent to avoid income tax. They can go to the country and support that proposition. I think it is vicious, preposterous, and monstrous that where there is a trust that is bona fide without any intent to evade income tax, that trust should bc subject to 10s. in the £1 income tax. I hope that the country will take heed of this attitude that has been defined for it by the Leader of the Opposition. That is his purpose in relation to this particular provision of the Bill. It fills me with the utmost apprehension.


Senator McKenna - The honorable senator is not worried also about the Government?


Senator WRIGHT - I have told the Committee that my disquiet increases when I find the Minister for Civil Aviation sharing a purpose in legislation that is so warmly espoused in this respect by the Leader of the Opposition; that is to say, to impose income tax of 10s. in the £1 on any taxable income which may be acquired by the trust instrument in one particular year or two or three years for the benefit of X. Just because X is not entitled to it in that year, even though the transaction is made bona fide, with the intent to evade income tax, it is to be taxed at 10s. in the £1 unless tha Commissioner of Taxation thinks it is unreasonable to apply this section of the measure. I believe I have said enough to put on record my position.







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