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Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Bill 1999

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1998-99

 

 

 

The Parliament of the Commonwealth of Australia

 

 

 

house of representatives

 

 

 

diesel and alternative fuels grants scheme

(administration and compliance) bill 1999

 

 

 

 

 

Explanatory Memorandum

 

 

 

 

(Circulated by authority of the

Treasurer, the Hon Peter Costello, MP)



T able of contents

General outline and financial impact.............................................. 3

Chapter 1   Commencement and general amendments.............. 5

Chapter 2   Record-keeping requirements.................................. 13

Chapter 3   Enforcement measures............................................. 17

Chapter 4   Recovery of scheme debts....................................... 23

Chapter 5   Information gathering and access powers.............. 27

Chapter 6   Rules for certain entities............................................ 33

Chapter 7   Miscellaneous............................................................. 35

Chapter 8   Amendment to the Taxation Administration

Act 1953....................................................................... 39

Chapter 9   Amendment of A New Tax System (Australian Business Number) Act 1999...................................................................................... 41

 



G eneral outline and financial impact

Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Bill 1999

This Bill amends the Diesel and Alternative Fuels Grants Scheme Act 1999 to insert the machinery and administrative provisions necessary to give administrative support that Act. This Bill also makes consequential amendments to the Taxation Administration Act 1953 and the A New Tax System (Australian Business Number) Act 1999 .

The Diesel and Alternative Fuels Grants Scheme Act 1999 represents a commitment that the Government made to Australia’s rural and regional heartland in the lead up to the 1998 election.

Date of effect :  This Bill provides that most provisions will commence on the day on which it receives Royal Assent. This will ensure that instruments and determinations may be made and registration mechanisms can be established before the Diesel and Alternative Fuels Grant Scheme (the Scheme) takes effect on 1 July 2000. This will avoid any undue delay in claimants receiving their entitlements.

Financial impact :  As the measures contained in this Bill are of a machinery and administrative nature there are no additional financial impacts of this Bill. The financial impact of the Scheme was contained in the Explanatory Memorandum to the Diesel and Alternative Fuels Grants Scheme Bill 1999.

Compliance cost impact :   The provisions of this Bill will result in compliance costs for those seeking grants under the Scheme.

The grant for vehicles with a gross mass of 20 tonnes or more will require little record keeping additional to kilometres travelled, litres used and receipts. Eligible fuel use in vehicles between 4.5 and 20 tonnes outside the metropolitan areas will have these same requirements. Where there is some use of vehicles between 4.5 tonnes and 20 tonnes inside and outside the metropolitan areas, more extensive records will be required to substantiate a claim for a fuel grant.

The Scheme is a scheme to provide Commonwealth grants only to eligible claimants. The Government considers it appropriate that those seeking access to the grants maintain sufficient records and evidence to substantiate their claims. Those records and evidence will also be needed to enable the Commissioner of Taxation to make a correct assessment of a person’s entitlement to the grants.

The Government has been conscious of the compliance costs required for the Scheme in the development of the provisions contained in this Bill and has sought to keep those costs to a minimum.

Application :  It is intended that the grant will be available for fuel used on or after 1 July 2000 and before 1 July 2002. It is intended that from 1 July 2002 the Scheme will be replaced by an Energy Grants (Credits) Scheme.

 

 



C hapter

Commencement and general amendments

Overview

1.1         This Chapter explains new operational provisions to the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA) to provide the methods and requirements necessary to calculate the quantity of the fuel grant available.

Summary of the legislation

1.2         The amendments deal with the short title of this Act, commencement provisions, the insertion of additional definitions and the following general operational provisions:

·          notification of change of registration details;

·          cancellation of registration;

·          what constitutes a journey;

·          statutory formulae for eligible use of fuel;

·          making an application to have a specified grant period;

·          advances on account of fuel grants;

·          further information required by the Commissioner of Taxation (the Commissioner);

·          the making of an assessment of your entitlement to a fuel grant;

·          reliance by the Commissioner on statements made in a claim;

·          the Commissioner must give notice of an assessment;

·          amendment of an assessment; and

·          production of a notice of assessment is conclusive evidence that the assessment was properly made.

 

Explanation of the amendments

Short title

1.3         Upon commencement this Bill will be cited as the Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Act 1999 . [Section 1 and items 2, 3 and 4 of Schedule 1]

Commencement

1.4         New sections 1, 2 and 3 and the provisions dealing with the short title, commencement, the Schedules and commencement provisions of Schedule 1 to this Bill respectively will commence on the day on which this Bill receives the Royal Assent.

1.5         The DAFGSA (other than sections 1, 2, 9 and 10) commence immediately after the commencement of the Diesel and Alternative Fuels Grants Scheme (Administration and Compliance) Act 1999 . This is necessary to ensure that instruments and determinations may be made and registration mechanisms can be established before the Diesel and Alternative Fuels Grants Scheme (the Scheme) takes effect on 1 July 2000.  This will avoid any undue delay in claimants receiving their entitlements.

1.6         Part 3 of Schedule 1 dealing with the amendment of the grants entitlement provisions commences immediately after the commencement of the DAFGSA .

1.7         Sections 9 and 10 of the DAFGSA can only commence once the emission standards have been established. Grants, therefore, can only be paid under the Scheme after these environmental safeguards have been established. It is, of course, also required that the necessary appropriations are made before grants can be made. [New subsections 2(1A) and (1B), item 1 of Schedule 1; items 2, 3 and 4 of Schedule 1]

Definitions

1.8         This Bill also amends section 5 of the DAFGSA to insert the following new definitions:

·          amount

·          occupier

·          APS employee

·          overpayment debt

·          assessment

·          premises

·          authorised officer

·          public road

·          Deputy Commissioner

·          scheme debt

·          false statement

·          trustee

·          goods

 

 

1.9         These new definitions are inserted into section 5 of the DAFGSA and are generally self explanatory.  For example, Deputy Commissioner means a Deputy Commissioner of Taxation, amount includes a nil amount, assessment includes a nil amount etc. [Items 5 to 19 of Schedule 1]

1.10       An amendment is also made to clarify that the Commissioner has the general administration of the DAFGSA. [New Section 6A, item 20 of Schedule 1]

1.11       This Bill ensures that a person must be registered before being able to claim a fuel grant. [New Section 6B, item 21 of Schedule 1]

1.12       The registration provision (section 7) is amended to clarify that people will be able to apply for registration on or after 1 March 2000.  This is to enable the administrative systems to be developed to deal with applications for registration.  [Item 22 of Schedule 1]

1.13       The registration provisions are also amended to require a person who is registered to notify the Commissioner within 28 days of any change in the prescribed registration details for entitlements to fuel grants. [New subsections 7(3) and (4), item 23 of Schedule 1]

1.14       The note in section 8, discussing the review of a decision of the Commissioner to refuse registration is removed because such a decision is a reviewable decision. Part IVC of Taxation Administration Act 1953 applies to these decisions and there is no necessity to refer the matter directly to the Administrative Appeals Tribunal. [Item 24 of Schedule 1]

1.15       A minor amendment is made to subsection 8(3) to change an internal cross reference from section 17 to new section 62 . [Item 25 of Schedule 1]

Cancellation of registration

1.16       New section 8A is inserted to enable the Commissioner to cancel registration where there has been no claim for a fuel grant within a 13 month period from the date of commencement of sections 9 and 10.  New section 8A also enables the Commissioner to cancel registration where your eligibility for registration has changed.

1.17       The Commissioner must cancel your registration in respect of a particular vehicle if you request such a cancellation.

1.18       The Commissioner must give you a written notification of cancellation. However, such a cancellation does not prevent you from applying for a fresh registration in respect of a particular vehicle.  [New section 8A, item 26 of Schedule 1]

What constitutes a journey

1.19       A new provision is inserted to enable the Commissioner to make a determination as to what will, or will not, constitute a journey for the purposes of the DAFGSA.  These determinations are to be in writing and will be of a legislative character.  As these determinations will be of a legislative character they will be a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 [New section 10A, item 27 of Schedule 1]

1.20       The Commissioner will issue these determinations after consultation with industry representatives, which must include (at least) the following:

·          the Bus Industry Confederation;

·          the Australian Trucking Association Ltd;

·          the National Farmers Federation; and

·          any other organisations (if any) as are specified in the regulations .

[New section 10A, item 27 of Schedule 1]

Statutory formulae for working out eligible use of fuel

1.21       If you are entitled to a grant for a vehicle of 20 tonnes or more you work out your entitlement using the following formula:



Total quantity of fuel



´

Eligible kilometres

 

 

Total kilometres

1.22       The same formula is used for vehicles of 4.5 tonnes or more, but less than 20 tonnes. [New section 10B, item 27 of Schedule 1]

1.23       The total quantity of fuel means the number of litres (or cubic metres) of the type of fuel used in the particular grant period that you actually purchased or imported into Australia.

1.24       Eligible kilometres means the number of kilometres travelled by the vehicle during the particular grant period using that type of fuel that you purchased or imported into Australia.

1.25       Total kilometres means the total number of kilometres travelled in the particular grant period using the type of fuel that you purchased or imported into Australia.

1.26       The Example 1.1 illustrates how the formula will operate:

Example 1.1

Vehicle of 20 tonnes or more

Wendy is an owner operator of a road train of more than 20 tonne gross vehicle mass (GMV). She is conducting an enterprise and all travel is part of the business.  All her travel is conducted in carrying on her enterprise and all of it is on public roads.  If she travels 4,000 km in a claim period and she used 3,000 litres of fuel in that period the calculation for the quantity of fuel claimed is:

 

3,000 litres 



´

4,000 km



 =

 

3,000 litres

 

 

4,000 km

 

 

All travel eligible but some travel in the metropolitan area

Alice is an owner operator of a road train of more than 20 tonne GVM. She is conducting an enterprise and all travel is part of the business.  All her travel is conducted in carrying on her enterprise and all is conducted on public roads.  If she travels 4,000 km in a claim period, 1,500 km of which is performed in a metropolitan area and she used 3,000 litres of fuel in that period the calculation for the quantity of fuel claimed is:



3,000 litres 



´

4,000 km



 =

 

3,000 litres

 

 

4,000 km

 

 

Not all travel eligible

Jane is an owner operator of a road train of more than 20 tonne GVM.  All her travel is conducted in carrying on her enterprise. Some of her travel is not on a public road.  If she travels 4,000 km in a claim period but only 3,500 km is on a public road and she used 3,000 litres of fuel in that period the calculation for the quantity of fuel claimed is:



3,000 litres



´

3,500 km



 =

 

2,625 litres

 

 

4,000 km

 

 

1.27       The same formula is used for vehicles of 4.5 tonnes or more, but less than 20 tonnes. Example 1.2 illustrates how the formula will operate.

Example 1.2

Vehicle of 4.5 tonnes or more, but less than 20 tonnes

All travel eligible

James is an owner operator of a bus of 10 tonne GVM. He is conducting an enterprise and all travel is part of the business. All his travel is conducted in carrying on his enterprise and all travel is conducted on public roads. All his journeys were conducted in a non metropolitan area.  If he travels 5,000 km a claim period and he used 2,000 litres of fuel in that period the calculation for the quantity of fuel claimed is:



2,000 litres



´

5,000 km



 =

 

2,000 litres

 

 

5,000 km

 

 

Not all travel eligible

Paul is an owner operator of a truck of 12 tonne GVM. All his travel is conducted in carrying on his enterprise.  Some of his travel is not on a public road and some is conducted in a metropolitan area. He travels 5,000 km in a claim period but only 4,000 km is on a public road.  Of the 4,000 km on a public road 500 km was solely in a metropolitan area.  He used a total of 2,000 litres of fuel in that period.  The calculation for the quantity of fuel claimed is:

Eligible km  =  4,000 km  -  500 km  =  3,500 km



2,000 litres



´

3,500 km



 =

 

1,400 litres

 

 

5,000 km

 

 

No travel eligible because in a metropolitan area

Shane is an owner operator of a truck of 12 tonne GVM.  All his travel is conducted in carrying on his enterprise. All of his travel is on public roads in a metropolitan area. He travels 5,000 km in a claim period. He used a total of 2,000 litres of fuel in that period. The calculation for the quantity of fuel claimed is:



2,000 litres



´

0 km



 =

 

0 litres

 

 

5,000 km

 

 

1.28       Minor amendments are made to section 11 dealing with the amount of fuel grants to make it clear that the grant is for use of a particular type of fuel. [Items 28 to 30 of Schedule 1]

1.29       A minor amendment is made to subsection 14(2) to substitute the word ‘However’ with ‘Despite subsection (1)’. This ensures that a grant period under a determination overrides a choice you may have made. [Item 31 of Schedule 1]

Making an application to have a specified grant period

1.30       Section 14 is amended to enable you to apply to treat 2 smaller grant periods of a financial year as grant periods. The smaller grant periods do not have to be of the same length but must not be longer than 11 calendar months. The Commissioner may, in writing, grant such an application and if the Commissioner refuses such an application the Commissioner must give written notice of the refusal. [New subsections 14(4) to (7), item 32 of Schedule 1]

Advances on account of fuel grants

1.31       This Bill also allows the Commissioner to make advances on account of a fuel grant that may become payable. [New subsection 14A(1), item 33 of Schedule 1]

1.32       If you receive an advance of a grant payable you must repay the amount if:

·          the amount of the advance is greater than the amount of the fuel grant; or

·          you do not make a claim for the fuel grant within 21 days after the end of the grant period.

[New subsections 14A(2) and (3), item 33 of Schedule 1]

1.33       The Commissioner must not make an advance unless requested to do so and the amount cannot exceed the amount requested. [New subsection 14A(4), item 33 of Schedule 1]

1.34       The Commissioner must not make an advance before the commencement of sections 9 and 10 of the DAFGSA. [New subsection 14A(6), item 33 of Schedule 1]

1.35       The request for an advance may be included in the same document as either:

·          an application for rebate under section 164 of the Customs Act 1901 ; or

·          an application for a rebate under section 78A of the Excise Act 1901 .

[New subsection 14A(5), item 33 of Schedule 1]

1.36       This Bill enables the Commissioner to make written guidelines for deciding whether to make advances of fuel grants. The Commissioner must comply with those guidelines. The guidelines will be disallowable instruments for the purposes of section 46A of the Acts Interpretation Act 1901 . [New section 14B, item 33 of Schedule 1]

1.37       Subsection 15(1) of the DAFGSA is repealed and replaced with new subsection 15(1) to make it clear that a person can only be entitled to a grant if a claim is made before 1 December 2002. [Item 34 of Schedule 1]

1.38       New paragraph (ba) is inserted into subsection 15(2) to require a claim to include such information as is specified in the regulations [new paragraph 15(2)(ba), item 35 of Schedule 1] .

1.39       An amendment is made to subsection 15(2) to make it clear that the subsection’s operation is not limited by section 7 which deals with registration for entitlement to the grant. [New subsection 15(2A), item 36 of Schedule 1]

1.40       New subsection 15(3A) is inserted to provide that if more than one claim is made for a particular grant period, you are not entitled, and are not taken to have been entitled, to a fuel grant in respect of that grant period. [New subsection 15(3A), item 37 of Schedule 1]

1.41       This Bill also makes further amendments to section 15 dealing with claims for payment to enable the following administrative matters to be dealt with:

·          further information may be required by the Commissioner about a claim. The Commissioner however, must request that further information within 28 days after the claim was made. The Commissioner need not consider your claim until the information is provided [new section 15A, item 38 of Schedule 1] ;

·          requiring the Commissioner to make an assessment of the amount of fuel grant where an application has been made [new section 15B, item 38 of Schedule 1] ;

·          the Commissioner being able to rely on statements made in a claim [new section 15C, item 38 of Schedule 1] ;

·          the Commissioner must give notice of an assessment.  However failure does not effect the validity of the assessment.  The Commissioner’s notification may be made electronically [new section 15D, item 38 of Schedule 1] ;

·          the Commissioner being able to amend an assessment at any time [new section 15D, item 38 of Schedule 1] ; and

·          that the production of an assessment is conclusive evidence that the assessment was properly made [new section 15F, item 38 of Schedule 1] .

1.36       Section 16 is amended to clarify that where you are entitled to a fuel grant in respect of a grant period, that grant is a debt due to you by the Commonwealth and you may sue for recovery of that grant.  [New section 16(1), item 39 of Schedule 1]

 

 



C hapter

Record-keeping requirements

Overview

2.1         This Chapter explains new Part 4 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA). This Part explains what records need to be created and retained if you are to be entitled to a fuel grant.

2.2         The rules in new Part 4 explain how long the records must be kept and what happens if they are not kept or produced when required by the Commissioner of Taxation (the Commissioner).

Summary of the legislation

2.3         New Part 4 contains the rules about what records need to be kept and retained to be entitled to a fuel grant. Broadly, to be entitled to claim a fuel grant:

·          records substantiating the claim must be kept and retained until the claim is made;

·          the records must be in English, or readily accessible and easily convertible into English;

·          the Commissioner can make a written determination setting out the kind of records, and the manner in which they are to be kept. Keeping records in accordance with that determination will satisfy the requirement to keep records substantiating a claim for a grant;

·          records substantiating a claim for the grant must be kept for 5 years after the claim was made, unless the Commissioner tells you that you do not need to keep them, or in the case of a company, the company has been finally dissolved;

·          the Commissioner can require records to be produced; and

·          special rules apply where records are lost or destroyed.

Purpose of the amendments

2.4         The overall purpose of the amendments is to ensure that sufficient records are kept to ensure that a claim for the grant can be substantiated.

Explanation of the amendments

No entitlement to fuel grants unless record-keeping requirements are met

2.5         You are not entitled to a fuel grant unless the record-keeping requirements set out in new Part 4 are satisfied.

2.6         To be eligible to claim a fuel grant, records substantiating a claim for the grant must be kept and retained. [New paragraph 17(1)(a) and new subsections 18(2) and 19(2), item 40 of Schedule 1]

2.7         If you make a statement in a claim undertaking to comply with the post-claim record keeping requirements the Commissioner can assume that you will comply with those requirements.  If you fail to comply with those requirements the Commissioner may amend your assessment.  [New subsection 17(2), item 40 of Schedule 1]

Commissioner may make determinations as to what records satisfy the record-keeping requirements

2.8         An applicant for a fuel grant will be taken to have satisfied the requirement to keep records substantiating a claim if he or she keeps records of the kind, and in a manner specified in a written determination made by the Commissioner [new subsection 18(4), item 40 of Schedule 1] . A determination made by the Commissioner under new subsection 18(4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901 [new subsection 18(5), item 40 of Schedule 1] .

Records have to be retained for up to 5 years

2.9         The records kept to substantiate a claim must be retained until the time of the claim for the fuel grant [new paragraph 18(2)(b), item 40 of Schedule 1] and for a further 5 years after the claim [new subsection 19(2), item 40 of Schedule 1] . The records need not be retained for this time if the Commissioner tells the applicant for the grant that the records do not need to be retained, or if the applicant for the grant is a company, it is finally dissolved before the end of the 5 years [new subsection 19(5), item 40 of Schedule 1 ] .

Records to be in English or easily convertible into English

2.10       The records kept and retained by the applicant for a fuel grant must be in the English language, or be readily accessible and easily convertible into the English language. [New subsection 18(3), item 40 of Schedule 1]

Commissioner may require records to be produced

2.11       The Commissioner may give written notice to a person, who has applied for or has been paid a fuel grant, to produce the records they have kept to substantiate their claim for the grant. The notice must give 28 days or more to comply. The 28 days will start from the day after the notice is given. The Commissioner can extend the time to comply with the notice. [New subsections 19(3) and 19(4), item 40 of Schedule 1]

2.12       Merely failing to comply with the notice will not result in an offence under section 8C of the Taxation Administration Act 1953 . However, failing to comply with the notice will mean that the record keeping requirements have not been satisfied and it will be taken that there is, and has never been, an entitlement to claim the grant. [New subsection 19(6), item 40 of Schedule 1]

Records that are lost or destroyed

2.13       New section 20 sets out the special rules that apply where records you are required to keep under new sections 18 and 19 are lost or destroyed. [New section 20, item 40 of Schedule 1]

2.14       If you have a complete copy of the lost or destroyed record, that copy will be treated as the original from the time the original was lost or destroyed [new subsection 20(2), item 40 of Schedule 1 ] . If such a copy is not available, but the Commissioner is satisfied that you took reasonable precautions to prevent the loss or destruction your entitlement to a fuel grant is not affected by your failing to retain or produce the original record [new subsection 20(3), item 40 of Schedule 1].

 

 

 



C hapter

Enforcement measures

Overview

3.1         This Chapter explains new Parts 5, 6 and 7 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA). These Parts insert new provisions dealing with disqualification for fraud, contrived schemes and the application of civil penalties.

3.2         The Government gave an undertaking that it would put in place rigorous enforcement measures to police the Diesel and Alternative Fuels Grants Scheme (the Scheme). In accordance with that undertaking new Parts 5, 6 and 7 of the DAFGSA will provide adequate penalties and safeguards to protect public funds and prevent abuse of the scheme.

Summary of the legislation

3.3         New Part 5 contains rules disqualifying claimants because of fraudulent acts of the claimant or an individual or entity closely associated with the claimant. The rules in new Part 5 will broadly disqualify individuals, body corporates, partnerships and trusts.

3.4         New Part 6 introduces provisions to apply to schemes entered into for the sole or dominant purpose of creating an entitlement to a grant where, in the absence of the scheme, there would be no such entitlement.

3.5         New Part 7 introduces civil penalties to apply to unpaid scheme debts and false statements. New Part 7 enables the Commissioner of Taxation (the Commissioner) to make an assessment of those penalties and also to remit some or all of those penalties.

Explanation of the amendments

New Part 5 - Disqualifications

3.6         The rules in new Part 5 ensure that claimants cannot benefit from the Scheme if they, or a person closely associated with their management have knowingly or recklessly made false statements to a person who is exercising powers, or performing functions under the DAFGSA and that statement results in a greater fuel grant than they were otherwise entitled.

Claimants generally

3.7         A claimant will be disqualified, and taken to have been disqualified from receiving a fuel grant if the claimant:

·          knowingly or recklessly makes a false statement (including omissions) in a material particular that would have resulted in an increased grant [new subsection 21(1), item 40 of Schedule 1] ; or

·          if a claimant knowingly or recklessly makes a false statement (including omissions) that would have resulted in an increased grant, anyone that aided, abetted, counselled or procured the making of a false statement by an entity, or were in any way, by act or omission, directly or indirectly, knowingly concerned in, or party to, the making of that false statement will also be disqualified [new subsection 22(1), item 40 of Schedule 1] .

How long will the claimant be disqualified?

3.8         A claimant disqualified under either new sections 21 or 22 will be disqualified from receiving any fuel grant at any time commencing from the beginning of the grant period and ending at the end of 30 June 2002. [New paragraphs 21(d) and 22(e), item 40 of Schedule 1]

3.9         The Commissioner may, however, determine, in writing, that the disqualification period may end earlier than 30 June 2002. [New paragraphs 21(e) and 22(f), item 40 of Schedule 1]

Disqualification of body corporate - executive disqualified etc.

3.10       Any body corporate will be disqualified from receiving a fuel grant at a particular time if it has a director, secretary or person who is concerned in, or takes part in, the management of the body corporate that is disqualified under new sections 21 or 22 . [New section 23, item 40 of Schedule 1]

Disqualification of partnership - partner disqualified etc.

3.11       A partnership will be disqualified from receiving a fuel grant at a particular time if it has:

·          a partner that is disqualified (including body corporates because a director, secretary or person involved in the body corporate’s management is disqualified); or

·          an individual employee that is disqualified and is concerned in, or takes part in, the management of the partnership.

[New section 24, item 40 of Schedule 1]

Disqualification of trust - trustee disqualified etc.

3.12       A trust will be disqualified from receiving a fuel grant at a particular time if it has:

·          a trustee that is disqualified (including a trustee that is a body corporate because a director, secretary or person involved in the body corporate’s management is disqualified); or

·          an individual employee that is disqualified and is concerned in, or takes part in, the management of the trust. [New section 25, item 40 of Schedule 1]

Example 3.1

Erin is the Director of Mobbin Pty Ltd. This company is the trustee of the Mobbin Family Trust which operates a large rural transport business.

Mobbin Pty Ltd, acting as trustee, claims a fuel rebate using false information. Trucks which were used solely in metropolitan areas are falsely recorded as being only used in rural areas. Erin prepared the false claim.

Erin is disqualified from claiming fuel rebates because she aided and abetted Mobbin Pty Ltd make the false claim. As she is disqualified, both the Mobbin Family Trust and Mobbin Pty Ltd are also disqualified from receiving fuel grants.

New Part 6 - Contrived schemes

3.13       New Part 6 introduces a provision which enables the Commissioner to disregard arrangements entered into for the sole or dominant purpose of creating an entitlement to a fuel grant.

3.14       A scheme is defined to be any agreement, arrangement, understanding, promise or undertaking, whether express or implied and whether or not enforceable, or intended to be enforceable by legal proceedings.  A plan, proposal, action, course of action or course of conduct will constitute a scheme if its conduct is unilateral or otherwise.

3.15       The provision is directed at arrangements designed for the sole or dominant purpose of enabling:

·          a particular use of diesel fuel or alternative fuel;

·          a particular journey; or

·          a particular operation of a vehicle;

to be taken into account for the purposes of calculating an entitlement to the fuel grant.

3.16       The provisions enable the Commissioner to take the following action in relation to the above circumstances:

·          treat that use of the diesel fuel or alternative fuel as if it never happened;

·          treat the particular journey as if it had never taken place; or

·          treat the operation of the vehicle as if it had never happened.

3.17       In deciding to treat a course of conduct as never having happened the Commissioner will make a determination to that effect. [New section 26, item 40 of Schedule 1]

New Part 7 - Civil penalties

3.18       For unpaid scheme debts new Part 7 will impose a penalty at the rate of 16% per year on the amount that remains unpaid after the day by which it should have been paid. This represents compensation to the Commonwealth for the time value of the money that you had access to where that money was correctly payable to the Commonwealth.

3.19       A designated scheme debt is a debt resulting from an overpayment or an amount payable by way of penalty for a false statement.  The penalty is calculated from the day on which the amount becomes due to be paid. [New subsections 27(1), (2) and (3), item 40 of Schedule 1]

3.20       The fact that a judgment is entered or given by a court does not cause the amount of the designated scheme debt to stop being unpaid for the purposes of the penalty for unpaid debts. [New subsection 27(4), item 40 of Schedule 1]

3.21       If the judgment debt bears interest, the penalty is reduced by the following formula:



Interest on judgment debt



´

Designated scheme debt component

 

 

Judgment debt

Designated scheme debt component means so much of the judgment debt as consists of a designated scheme debt.

3.22       When working out the day on which the overpayment debt is due to be paid you use the following table:

 

 



Day by which overpayment debt is due to be paid

Item

Type of overpayment debt

Day on which debt is due to be paid

1

so much of an amount paid, or purportedly paid, to an entity by way of a fuel grant as represents an overpayment

the day on which the fuel grant was paid

2

an amount that is repayable as a result of an advance

the day on which the advance concerned was paid

[New subsection 27(6), item 40 of Schedule 1]

3.23       The penalty provisions do not apply to an overpayment debt that arose because of an error made by the Commissioner (provided the grant was received in good faith) or was due to a change in regulations for the purpose of calculating the amount of the fuel grant. [New subsections 27(7) and (8), item 40 of Schedule 1]

3.24       This Bill makes it clear that the imposition of the penalty for unpaid scheme debts does not impose taxation (within the meaning of section 55 of the Constitution). [New subsection 27(9), item 40 of Schedule 1]

Penalty for false statements

3.25       This Bill inserts a penalty for making a false statement that results in the amount of a diesel or alternative fuel grant payable exceeding that which would have been payable if you had not made the false statement. The statement may be considered false irrespective or whether or not you knew it was false. The penalty for such a false statement is double the amount of the excess grant. [New section 28, item 40 of Schedule 1]

3.26       The Commissioner must make an assessment of a penalty for a false statement and give you notice of the assessment as soon as practicable after the assessment is made. However, failure to notify you of the assessment does not affect the validity of the assessment. The Commissioner may notify you electronically or the notification may be included in another type of notice the Commissioner gives you. The penalty becomes due and payable on the day specified in the notice but must be at least 14 days after the notice is given to you. [New section 29, item 40 of Schedule 1]

3.27       The Commissioner may amend an assessment at any time and the production of a notice of assessment is conclusive evidence that the assessment was properly made. The Commissioner is also able to remit some or all of the penalty under new Part 7 if the Commissioner is satisfied that it is fair and reasonable to do so. [New sections 30, 31 and 32, item 40 of Schedule 1]

3.28       Where you are prosecuted for an offence under new Part 7 you will not be liable to further penalty under this Part. [New section 33, item 40 of Schedule 1]

 

 



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Recovery of scheme debts

Overview

4.1         This Chapter explains new Part 8 of the Diesel and Alternative Fuels Grants Scheme Act 1999 . This Part deals with situations where an amount has been incorrectly paid under the Diesel and Alternative Fuels Grants Scheme (the Scheme) and enables the Commonwealth to recover those amounts.

4.2         Some of the provisions in new Part 8 are similar to those in other Acts administered by the Commissioner of Taxation (the Commissioner).

Summary of the legislation

4.3         New Part 8 contains rules to support the recovery of payments made under the Scheme and makes provision for the following:

·          a notice of assessment evidences that the assessment was correctly made;

·          the Commissioner may sue for the debt;

·          the debt may be set off against other grants made under the Scheme;

·          recovery of a scheme debt from another entity; and

·          recovery of a scheme debt which has not been paid at the time of the person’s death.

Purpose of the amendments

4.4         The overall purpose of the amendments is to enable the Commissioner to recover amounts incorrectly paid under the Scheme.

Explanation of the amendments

Recovery of scheme debts

4.5         A scheme debt includes an amount of penalty under new Part 7 and is a debt due to the Commonwealth.  A scheme debt is a debt that the Commissioner can sue for in the appropriate court. [New sections 34 and 35, item 40 of Schedule 1]

Recovery by set-off

4.6         Where an entity has a scheme debt and is entitled to other fuel grants under the Scheme the amount of the outstanding scheme debt may be deducted from the entity’s entitlement to those other grants.

4.7         If the Commissioner applies an amount of grant in satisfaction of a scheme debt the fuel grant so applied is taken to have been paid to the entity.  [New section 36, item 40 of Schedule 1]

Example 4.1

Longhaul Trucking Co. has a scheme debt for period X of $5,600 and a penalty of $896.  In period X the company is entitled to a grant under the Scheme of $10,000.  The Commissioner is able to offset the scheme debt and penalty ($6,496) against the company’s entitlement to the grant.  In this case the company would receive the balance of $3,504 and the fuel grant for period X is taken to have been paid in full to Longhaul Trucking Co.

Recovery from third party

4.8         If an entity has a scheme debt the Commissioner will be able to collect that debt from a third party that owes money to the entity. [New subsection 37(1), item 40 of Schedule 1]

4.9         The Commissioner may direct a person, who owes  money to an entity with a scheme debt, to pay some or all of that person’s debt to the entity to the Commissioner instead.  However, the Commissioner cannot require a third party to pay an amount prior to them owing the amount to the entity. [New subsections 37(2), (3), and (9), item 40 of Schedule 1]

4.10       Where a person receives such a direction from the Commissioner they must comply with that direction.  Failure to comply with a direction from the Commissioner gives rise to a penalty of 20 penalty units.  If a person is convicted of failing, or refusing, to comply with a determination from the Commissioner a court may order the person to pay the amount to the Commissioner. [New subsections 37(4) and (5), item 40 of Schedule 1]

4.11       Where a person complies with a direction from the Commissioner and pays that amount to the Commissioner the person is taken to have made that payment with the authority of the entity.  This ensures that the entity cannot take action against the person for failure of the person to pay their debt to the entity. [New subsection 37(6), item 40 of Schedule 1]

Example 4.2

Rural Transport Co. has a scheme debt of $1,500.  Brian owes Rural Transport Co. $1,500 for some stock that they transported for Brian.  The Commissioner directs Brian to pay $1,500 to the Commissioner in satisfaction of Rural Transport Co.’s scheme debt.  Brian complies with this request.  The indemnity in new subsection 37(6) provides that Brian actually paid the amount to the Commissioner with the authority of Rural Transport Co. and as such has satisfied his debt to Rural Transport Co.

4.12       The Commissioner must notify a third party that has received a direction if an amount of an entity’s scheme debt has been paid before the third party is required to make a payment to the Commissioner.  This has the effect of varying the direction from the Commissioner to the correct amount outstanding. [New subsections 37(7) and (8), item 40 of Schedule 1]

Recovery of scheme debt from the trustee of a deceased estate

4.13       If at the time of your death, you had an unpaid scheme debt, the Commissioner will have the same powers and remedies for assessment and recovery from the trustee of your estate as he or she would have had against you before your death.  A trustee includes an executor or administrator.  [New subsections 38(1) and (2), item 40 of Schedule 1]

4.14       The trustee will be required to give any information to the Commissioner that you would have been liable to provide.  The trustee will also be required to provide any other information that the Commissioner may require. [New subsection 38(3), item 40 of Schedule 1]

4.15       If the trustee does not provide the requested information the Commissioner will able to make an assessment of a scheme debt. [New subsection 38(4), item 40 of Schedule 1]

4.16       The trustee will be liable for the same penalty for any unpaid scheme debt for which you would have been liable if you had still been alive. [New subsection 38(5), item 40 of Schedule 1]

4.17       Any amount of scheme debt payable by the trustee will be a charge on all the assets of your estate in the hands of the trustee. [New subsection 38(6), item 40 of Schedule 1]

4.18       The Commissioner may at any time amend an assessment of a scheme debt.  An amended assessment is treated as an assessment.  [New subsections 38(7) and (8), item 40 of Schedule 1]

4.19       A trustee who is dissatisfied with an assessment made under this section may seek review of that assessment by lodging an objection under Part IVC of the Taxation Administration Act 1953 . [Items 8 and 9 of the table in new subsection 55(2), item 42 of Schedule 1]

Recovery of scheme debt from an unadministered deceased estate

4.20       If probate has not been granted or letters of administration have not been granted within 6 months after your death, the Commissioner will be able to make an assessment or amended assessment of your liability to a scheme debt.  The Commissioner will be required to publish notice of the assessment  twice in a daily newspaper in the State or Territory where you resided at the time of death.  [New subsections 39(1) and (2), item 40 of Schedule 1]

4.21       A person who claims an interest in the deceased person’s estate, or has been granted probate of the person’s will, or letters of administration of the person’s estate, and who is dissatisfied with the assessment will be able to seek review of the assessment by lodging an objection in the way prescribed in Part IVC of the Taxation Administration Act 1953 [New subsections 39(3) and (6), item 40 of Schedule 1]

4.22       The Commissioner may at any time amend an assessment of a scheme debt [new subsection 39(4), item 40 of Schedule 1] . An amended assessment is treated as an assessment. The production of a notice of assessment is conclusive evidence that the assessment was properly made. [New subsection 39(5) and section 40, item 40 of Schedule 1]

 



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Information gathering and access powers

Overview

5.1         This Chapter explains new Parts 9, 10, 11 and 12 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA). These Parts deal with the Commissioner of Taxation’s (the Commissioner) information gathering and access powers. These Parts provide for:

·          information gathering powers to be conferred on the Commissioner;

·          protection of confidentiality of information;

·          the Commissioner’s access to premises; and

·          the Commissioner’s power to stop and search vehicles.

Summary of the legislation

5.2         New Parts 9, 10, 11 and 12 of the DAFGSA facilitate the Commissioner’s ability to seek and obtain information in the following ways:

·          directing a person to provide information;

·          access to premises; and

·          power to stop and search vehicles.

Purpose of the amendments

5.3         Provisions dealing with access to premises and information gathering powers are necessary for the Commissioner to ensure compliance with the DAFGSA. Similar provisions are found in other Acts administered by the Commissioner.

5.4         The access and information gathering powers may be used, for example, to ensure that an entity is entitled to claim payments under the scheme. To ascertain an entity’s entitlement it may be necessary for authorised officers to inspect documents which may not otherwise be available for inspection if access and information gathering powers are not included in this Bill.

Explanation of the amendments

Commissioner may direct a person to provide information

5.5         Where the Commissioner has reason to believe that the person has information and is capable of giving evidence to the Commissioner that is relevant to the DAFGSA the Commissioner will have powers to compel the person to provide information and to obtain access to premises and documents. The confidentiality of the information obtained by the Commissioner or his officers will be protected (see paragraphs 5.14 to 5.20).

5.6         The Commissioner will have the power to require a person:

·          to provide such information as the Commissioner requires;

·          to attend and give evidence; and

·          to produce documents in the custody or control of the person.

The Commissioner will be able to use these powers for the purposes of the administration of the DAFGSA. [New section 41, item 40 of Schedule 1]

5.7         The Commissioner will be able to require information or answers to be given orally or in writing. [New subsection 41(2), item 40 of Schedule 1]

5.8         The law will also provide for regulations to set out scales for the reimbursement of expenses for persons required to attend before the Commissioner. [New subsection 41(3), item 40 of Schedule 1]

5.9         An individual will not be able to refuse to give information or evidence to the Commissioner on the grounds that providing that information or evidence may incriminate the individual or expose them to a penalty. However, such information or evidence cannot be used against the individual in criminal proceedings except where those proceedings relate to failure to comply with requirements under a taxation law. [New section 42, item 40 of Schedule 1]

5.10       The Commissioner may inspect documents, make and retain copies of those documents or take and retain extracts from documents. [New section 43, item 40 of Schedule 1]

5.11       The Commissioner is also entitled to take possession of documents. The person who was otherwise entitled to possession of the documents can obtain a certified copy of the documents from the Commissioner. The Commissioner must permit the person to inspect and make copies or extracts from the documents until the Commissioner provides the person with certified copies of the documents. [New section 44, item 40 of Schedule 1]

5.12       The Crown in the right of the Commonwealth is also bound but it cannot be prosecuted for an offence . [New section 45, item 40 of Schedule 1]

Protection of confidentiality of information

5.13       The dissemination of information obtained under the DAFGSA will be restricted . [New section 46, item 40 of Schedule 1]

5.14       An obligation of secrecy will be imposed on persons who, in the course of their duties relating to the administration of the DAFGSA , acquire information about the affairs of another person. A person who holds protected information or documents obtained in the course of official employment will be prohibited from making a record of the information or disclosing it to anyone else, except in specified circumstances. The penalty for a breach of this prohibition is imprisonment for 2 years. [New subsection 46(2), item 40 of Schedule 1]

5.15       Protected information will be defined as information obtained under the DAFGSA by a person acting in the course of official employment and relating to the affairs of another person. Protected documents will be documents made or given under, or for the purposes of the DAFGSA. Official employment will mean, as well as appointment or employment by the Commonwealth, performance or services for the Commonwealth or the exercise of powers or functions under a delegation by the Commissioner. [New subsection 46(6), item 40 of Schedule 1]

5.16       A person will be able to record or disclose protected information or documents if:

·          the recording or disclosure is for the purposes of the DAFGSA;

·          it happens in the course of official employment;

·          the person is the Commissioner or Deputy Commissioner of Taxation and the disclosure is to the Chief Executive Officer of Customs, to the Australian Statistician for the purposes of the Census and Statistics Act 1905 , to another person carrying out functions under a taxation law or to the Administrative Appeals Tribunal in proceedings under a taxation law; or

·          the person making the disclosure has been authorised by the Commissioner or Deputy Commissioner to disclose the information and the disclosure is to the Chief Executive Officer of Customs, to another person carrying out functions under a taxation law administered by the Commissioner or to the Australian Statistician for census or for the purposes of the Census and Statistics Act 1905 .

[New subsection 46(3), item 40 of Schedule 1]

5.17       Disclosure of information or the production of a document can be made to a court if it is necessary to give effect to the DAFGSA. A person acting in the course of official employment will not otherwise be required to produce protected information or documents to a court. [New subsection 46(5), item 40 of Schedule 1]

5.18       There will be no circumstances in which a disclosure of protected information or documents can be made to a Minister. [New subsection 46(4), item 40 of Schedule 1]

5.19       These provisions are consistent with secrecy provisions in other Acts administered by the Commissioner.

Access to premises

5.20       An authorised officer will be entitled to access premises where that officer has reason to believe that there are documents, goods or any other property that is relevant to the operation of the DAFGSA. [New subsection 47(1), item 40 of Schedule 1]

5.21       An authorised officer must be given entry at any reasonable time, to land or premises. Authorised officers must also be given full access to documents, goods or other property at all reasonable times. They must be allowed to inspect, examine, count, measure, weigh, gauge, test or analyse any goods or other property and take samples from them. [New section 47(2), item 40, Schedule 1]

5.22       The occupier of the land or premises will be obliged to provide the officer seeking access with reasonable facilities and assistance. [New subsection 47(4), item 40 of Schedule 1]

5.23       For example, an authorised officer will be entitled to reasonable use of photocopying, telephone, fax and light and power facilities and of the work space and facilities to extract relevant information stored on computer. In addition, the officer will be entitled to reasonable assistance, for example, in the form of advice as to where relevant documents are located and access to areas where such documents are located.

5.24       If reasonable facilities and assistance are not provided, the occupier will be guilty of an offence with a maximum penalty of 10 penalty units. [New subsection 47(5), item 40 of Schedule 1]

5.25       An officer will not be entitled to remain on land or premises if they fail to produce their identity card when requested . [New subsection 47(3), item 40 of Schedule 1]

Identity cards

5.26       The Commissioner must issue an identity card to an officer authorised under the DAFGSA. The identity card must be in the form prescribed by the regulations and must contain a recent photograph of the authorised officer. An authorised officer must carry their identity card at all times when performing the functions of an authorised officer under the DAFGSA. [New subsections 48(1), (2), (3) and (5), item 40 of Schedule 1]

5.27       A person is guilty of an offence with a penalty of 1 penalty unit if they fail to immediately return their identity card once they cease to be an authorised officer. [New subsection 48(4), item 40 of Schedule 1]

5.28       The Crown in the right of the Commonwealth is also bound but it cannot be prosecuted for an offence. [New section 49, item 40 of Schedule 1]

Power to stop and search vehicles

5.29       If an authorised officer has reasonable grounds to believe that a particular vehicle is a vehicle which is used by an entity to obtain fuel grants the officer may stop the vehicle, search the vehicle and even detain the vehicle. Once an authorised officer has stopped a vehicle the officer must identify him or herself as an authorised officer. These powers are needed to allow authorised officers to obtain information, make inspections and take samples of fuel from the vehicle.

5.30       An authorised officer may require the driver of such a vehicle to do any or all of the following:

·          stop the vehicle;

·          provide the driver’s name and address;

·          provide the name and address of the entity that holds the registration for the vehicle;

·          provide information about the origins and destinations of any passengers or goods being carried by or in the vehicle;

·          if the vehicle is on a journey - provide details about the journey;

·          produce a consignment note, passenger manifest or other document about the goods, passengers, origin, destination or the journey;

·          detain the vehicle for a reasonable period to carry out a search or inspection of the vehicle and to take fuel samples from the vehicle.

An authorised officer exercising these powers must show the driver of the vehicle his or her identity card. [New section 50, item 40 of Schedule 1]

5.31       This Bill also inserts similar provisions dealing with ‘self incrimination’ (see paragraph 5.9) and ‘identity cards’ (see paragraphs 5.27 and 5.28). [New sections 50 and 51, item 40 of Schedule 1]

 



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Rules for certain entities

Overview

6.1         This Chapter explains the provisions in new Part 13 of the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA). This Part imposes separate obligations on certain entities if other entities have obligations under the DAFGSA and the Taxation Administration Act 1953 (TAA 1953).

Summary of the legislation

6.2         The special rules apply to partnerships and unincorporated associations or bodies of persons.

Explanation of the amendments

6.3         An entity for the purposes of the DAFGSA and the TAA 1953 includes partnerships and unincorporated associations or bodies (see definition of ‘entity’ in section 5 of DAFGSA and section 37 of the A New Tax System (Australian Business Number) Act 1999 .

Treatment of Partners

6.4         Both the DAFGSA and TAA 1953 will apply to partnerships as if it were a person, but with the following changes [new subsections 53 (1) and (6), item 40 of schedule 1] :

·          because a partnership is not a separate legal person, obligations imposed by DAFGSA and the TAA 1953 on a partnership are imposed on each partner, but may be discharged by any of the partners [new subsection 53(2), item 40 of Schedule 1] ;

·          partners will be jointly and severally liable to pay amounts payable by the partnership [new subsection 53(3), item 40 of Schedule 1] ;

·          any offences committed by the partnership will be taken to have been committed by each partner who aided, abetted, counselled or procured the relevant act or omission or was knowingly concerned or a party to that act or omission [new subsection 53(4), item 40 of Schedule 1] ; and

·          a change in the composition of the partnership does not affect the continuity of the partnership [new subsection 53(5), item 40 of Schedule 1] .

Treatment of unincorporated associations

6.5         Both the DAFGSA and TAA 1953 will apply to an unincorporated association as if it were a person, but with the following changes [new subsections 54 (1) and (4), item 40 of Schedule 1] :

·          obligations that would be imposed on an unincorporated association or body of persons are imposed on each member of the committee of management of that association or body, but may be discharged by any of those members [new subsection 54(2), item 40 of Schedule 1] ; and

·          any offences committed by the association or body will be taken to have been committed by each member of its committee of management who aided, abetted, counselled or procured the relevant act or omission or was knowingly concerned or a party to that act or omission [new subsection 54(3), item 40 of Schedule 1] .

 

 



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Miscellaneous

Overview

7.1         This Chapter makes some miscellaneous amendments to the Diesel and Alternative Fuels Grants Scheme Act 1999 (DAFGSA) to:

·          renumber some sections;

·          insert a provision dealing with reviewable fuel grants decisions;

·          apply the Criminal Code to offences against the DAFGSA;

·          treat fuel grants as subsidies for the purposes of the Income Tax Assessment Act 1997 ; and

·          insert a provision dealing with address for service.

Explanation of the amendments

7.2         The heading to Part 4 of the DAFGSA is repealed and replace with ‘Part 14 - Miscellaneous’. [Item 41 of Schedule 1]

7.3         This Bill repeals section 17 of the DAFGSA and substitutes a new section 55 dealing with reviewable fuel grants decisions.  The amendment enables a person to object, under Part IVC of the Taxation Administration Act 1953 , against the following decisions:

·          refusing an application for registration;

·          cancelling registration;

·          refusing to grant an application to treat smaller periods of a financial year as grant periods;

·          making an assessment of the amount of fuel grant;

·          amending an assessment of the amount of a fuel grant;

·          making an assessment of the amount of a penalty;

·          amending an assessment of an amount of penalty;

·          making an assessment where there is a trustee of a deceased estate; and

·          amending an assessment where there is a trustee of a deceased estate. [New section 55, item 42 of Schedule 1]

7.4         Item 43 of Schedule 1 renumbers section 18 as new section 56 .

7.5         Item 44 of Schedule 1 amends the DAFGSA by inserting new section 57 to ensure that the Criminal Code applies to all offences against the DAFGSA.

7.6         Item 45 of Schedule 1 renumbers section 19 as new section 58 .

7.7         Item 46 of Schedule 1 omits a reference in section 19 to ‘Grants payable under this Act’ and substitutes ‘Fuel grants, and advances on account of fuel grants’.

7.8         This Bill amends the DAFGSA to ensure that a fuel grant is taken to be a subsidy for the purpose of section 15-10 of the Income Tax Assessment Act 1997 . This ensures that the recipient of a fuel grant must include the amount of the grant in their assessable income for income tax purposes. [New section 59, item 47 of Schedule 1]

Address for s e rvice

7.9         For fuel grant purposes the address to which the Commissioner of Taxation (the Commissioner) will deliver or send notices or other documents is:

·          the address shown on the Australian Business Register (if the entity is registered on it);

·          the address last notified to the Commissioner in any claim, application or other document under the DAFGSA (if it is not registered on the Australian Business Register); or

·          any other address the Commissioner reasonably believes to be the entity’s address for service .

[New subsection 60(1), item 47 of Schedule 1]

7. 10        Notices or other documents may be served by posting them to the address you have notified to the Commissioner. [New subsection 60(2), item 47 of Schedule 1]

7.11       However, the Commissioner may serve them by electronic transmission if the entity has claimed the fuel grant electronically and has notified the Commissioner of an address for receipt by way of electronic transmission. [New subsection 60(3), item 47 of Schedule 1]

Service of documents if entity absent from Australia or cannot be found

7.12       If a document needs to be served on an entity in respect of any proceeding to recover a scheme debt and the Commissioner is satisfied (after reasonable enquiries) that:

·          the entity is absent from Australia and does not have any agent in Australia on whom the document can be served; or

·          the entity cannot be found; then

the Commissioner may, without the court’s leave, serve the document on the entity by posting it, or a sealed copy of it, to the entity at the entity’s Australian address (including the entity’s Australian place of business or residence) that is last known to the Commissioner. [New section 61, item 47 of Schedule 1]

7.13       This Bill inserts an ability for the Commissioner to authorise, in writing, an APS employee to be an authorised officer for the purposes of the DAFGSA. [New section 62, item 47 of Schedule 1]

7.14       Item 48 of Schedule 1 renumbers section 20 of the DAFGSA as new section 63 .

Amendment of the grant entitlement provisions

7.15       Subsections 9(1) and 10(1) of the DAFGSA are amended to provide an entitlement to the grant where a vehicle is not registered for the scheme. Even if you failed to register your vehicle for the grants scheme before you used the fuel you may still be entitled to a grant. [Items 49 to 52 of Schedule 1]

 



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Amendment to the Taxation Administration Act 1953

Overview

8.1         The proposed amendments in Schedule 2 to this Bill will make consequential amendments to Taxation Administration Act 1953 (TAA 1953) to introduce references to the Diesel and Alternative Fuels Grants Scheme Act 1999 .

Explanation of the amendments

8.2         Item 1 of Schedule 2 amends section 2 of the TAA 1953 to insert a reference to the ‘ Diesel and Alternative Fuels Grants Scheme Act 1999 ’ into the definition of ‘taxation law’.

8.3         Item 2 of Schedule 2 inserts a note into section 2 of the TAA 1953 to signpost you to a similar amendment to Part III of the TAA 1953 (the prosecutions and offences provisions) which is also an amendment to make reference to the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.4         Item 3 of Schedule 2 amends the secrecy provisions in section 3C of the TAA 1953 to insert a definition of ‘taxation law’ to include the Diesel and Alternative Fuels Grants Scheme Act 1999 .

8.5         Item 4 of Schedule 2 amends subsection 3D(22) of the TAA 1953 to enable information received under the Diesel and Alternative Fuels Grants Scheme Act 1999 to be provided to the National Crime Authority.

8.6         Item 5 of Schedule 2 amends section 6D of the TAA 1953 to extend the powers and functions of a Second Commissioner of Taxation (Second Commissioner) to also apply to matters arising under the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.7         Item 6 of Schedule 2 amends Part III of the TAA 1953 (the prosecutions and offences provisions) to ensure that references in that Part to ‘taxation law’ (except subsections 8J(12), (13), (14) and (15) and section 8XB) includes a reference to the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.8         Item 7 of Schedule 2 amends paragraph 8J(2)(a) of the TAA 1953 to ensure that a statement made in a ‘claim’ under the Diesel and Alternative Fuels Grants Scheme Act 1999 will constitute a statement made to a taxation officer for the purposes of the TAA 1953.

8.9         Item 8 of Schedule 2 amends paragraph 8J(2) of the TAA 1953 to ensure that where the Commissioner of Taxation (Commissioner) directs a person to produce documents under the Diesel and Alternative Fuels Grants Scheme Act 1999 the document so produced will not constitute a statement made to a taxation officer.

8.10       Item 9 of Schedule 2 amends subsection 8W(2) of the TAA 1953 to enable a court to order payment of an amount in addition to penalty where the offences relate to the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.11       Item 10 of Schedule 2 provides that the reference to ‘fuel grant’ has the same meaning as in the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.12       Item 11 of Schedule 2 amends subsection 14ZW(1C) of the TAA 1953 which deals with when objections can be lodged.

8.13       Item 12 of Schedule 2 amends section 15 of the TAA 1953 to enable the Commissioner, a Second Commissioner or a Deputy Commissioner of Taxation to appear personally or may be represented in a proceeding in relation to the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.14       Item 13 of Schedule 2 amends section 15A of the TAA 1953 to enable the Commissioner to certify as true a copy of a document obtained under the Diesel and Alternative Fuels Grants Scheme Act 1999.

8.15       Item 14 of Schedule 2 amends section 17B of the TAA 1953 to allow the Commissioner to apply for an injunction to prevent contravention of secrecy provisions by ensuring that the Diesel and Alternative Fuels Grants Scheme Act 1999 is treated as if it were a taxation law .

 

 

 



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Amendment of A New Tax System (Australian Business Number) Act 1999

9.1         Item 1 of Schedule 3 amends paragraph 20(3)(c) of the A New Tax System (Australian Business Number) Act 1999 to enable the Registrar of the Australian Business Register to disclose information to a person carrying out functions under the Diesel and Alternative Fuels Grants Scheme Act 1999 .