CHAPTER 7
Retrospective Application of Taxation Laws
7.1 The Committee was concerned with two aspects of retrospective application
of taxation laws. Under Rule No. 23 of the Senate Procedural Orders of
Continuing Effect states
Where the government has announced, by press release, its intention
to introduce a bill to amend taxation law, and that bill has not been
introduced into the Parliament or made available by way of publication
of a draft bill within 6 calendar months after the date of that announcement,
the Senate shall, subject to any further resolution, amend the bill
to provide that the commencement date of the bill shall be a date that
is no earlier than either the date of introduction of the bill into
the Parliament or the date of publication of the draft bill
7.2 This raises two issues of substance. First, the legislation has passed
the 6 month time limit, as identified by Arthur Anderson. Second, the
issue of the press announcement being as fulsome as possible in informing
the public of the Government's intentions for the law as identified by
Mr Dukes of Blake Dawson Waldron.
7.3 The Assistant Treasurer has addressed the 6 month time limit issue
in a response to the Senate Standing Committee for the Scrutiny of Bills
(Sixth Report of 1999, 21 April 1999).
7.4 That report also considered several retrospective application of
tax laws issues raised with the Committee. The issue identified by Mr
Dukes of Blake Dawson Waldron has been forwarded to the Assistant Treasurer
for his consideration. As yet the Assistant Treasurer has not responded
to the issues raised by Mr Dukes.
Recommendation
The Committee recommends that the Government give serious consideration
to amending Schedule 7 of the bill to remove any retrospective aspects
of the proposed legislation.
These amendments are directed at distributions made prior to 2 July 1998
in respect of interests created in trusts before 7.30pm on 13 May 1997
yet acquired after that time which would not be subject to the new provisions.
Any distributions on these trust interests made on or after 2 July 1998
would be subject to the provisions of Schedule 7.
Senator Alan Ferguson
Chair