Commonwealth Numbered Regulations - Explanatory Statements

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TERMINATION PAYMENTS TAX (ASSESSMENT AND COLLECTION) REGULATIONS 1997 NO.274

STATUTORY RULES 1997 No. 274

Issued by the Authority of the Assistant Treasurer

Termination Payments Tax (Assessment and Collection) Act 1997

Termination Payments Tax (Assessment and Collection) Regulations

The Termination Payments Tax (Assessment and Collection) Act 1997 (the, Act) provides for the assessment and collection of the termination payments tax.

Section 30 of the Act provides that the Governor-General may make regulations for the purposes of the Act. Section 30 enables regulations to prescribe matters required or permitted by the Act or necessary or convenient for carrying out or giving effect to the Act.

The regulations:

*       provide rules for determining a person's address for service and last known place of business or residence in Australia (regulations 3 and 4);

*       allow the Commissioner of Taxation (the Commissioner) to mark or annotate information given to the Commissioner (regulation 5);

*       allow the Commissioner to request information in connection with the operation or possible future operation of the Act and these Regulations (regulation 6); and

*       provide rules governing the service of documents, signatures on documents, rounding of amounts and reimbursement of expenses for persons attending before the Commissioner (regulations 7, 8, 9 and 10).

The purpose of the regulations is to prescribe administrative matters to assist the assessment and collection of the termination payments tax payable on payments commonly known as 'golden handshakes' that are made to high income earners on the termination of employment.

The regulations are described in detail in the attachment. The regulations commence on gazettal.

ATTACHMENT

Termination Payments Tax (Assessment and Collection) Regulations,

COMMENCEMENT OF THE REGULATIONS

The Termination Payments Tax (Assessment and Collection) Regulations (the Regulations) commence on gazettal.

BACKGROUND TO THE REGULATIONS

The Termination Payments Tax (Assessment and Collection) Act 1997 (the Act) provides for the assessment and collection of the termination payments tax.

Section 30 of the Act enables regulations to prescribe matters required or permitted by the Act or necessary or convenient for carrying out or giving effect to the Act.

Subsection 27(4) of the Act enables regulations to prescribe scales of expenses to be allowed to persons required to attend before the Commissioner of Taxation (the Commissioner) under section 27 of the Act.

The Regulations prescribe a scale of expenses to be allowed to persons required to attend before the Commissioner and other matters necessary or -convenient for the assessment and collection of the termination payments tax.

EXPLANATION OF THE REGULATIONS

Regulation 1 - Citation

Regulation 1 provides that the Regulations may be cited as the Termination Payments Tax (Assessment and Collection) Regulations.

Regulation 2 - interpretation

Regulation 2 contains definitions of terms used in the Regulations. The definitions are self explanatory.

Regulation 3 - How an address for service will be determined

Regulation 3 provides rules for determining a person's address for service and is consistent with Income Tax Regulation 38.

Regulation 4 - Last known place of business or residence

Regulation 4 provides that a person's address for service is taken to be the person's last known place of business or residence in Australia and is consistent with Income Tax Regulation 39.

Regulation 5 - Commissioner may cause information to be marked or annotated

Regulation 5 authorises the Commissioner to mark or make annotations on any information given to the Commissioner and is consistent with Income Tax Regulation 41.

Regulation 6 - Commissioner may request information

Regulation 6 allows the Commissioner to request any person to give information in connection with the operation or possible future operation of the Act and these Regulations.

Regulation 7 - Service of documents

Regulation 7 contains rules governing the service of documents and is, consistent with Income Tax Regulation 170.

Regulation 8 - Presumption as to signatures

Regulation 8 provides that judicial notice must be taken of the names and signatures of current or former Commissioners, Second Commissioners, Deputy Commissioners and delegates of the Commissioner and that a document that bears the name of any such person is to be taken as signed by that person unless it is proved that the document was issued without authority. Regulation 8 is consistent with Income Tax Regulation 172.

Regulation 9 - Amounts remitted or refunded to be rounded up

Regulation 9 provides that if an amount of surcharge, interest or late payment penalty to be refunded or remitted under the Act is not a multiple of 5 cents, the amount is to be increased to the nearest multiple of 5 cents.

Regulation 10 - Expenses for persons attending before the Commissioner

Regulation 10 prescribes (as set out in the Schedule to the Regulations) a scale of expenses to be allowed to persons (other than persons giving information or answering questions in respect of their own income or assessment or the income or assessment of persons whose representatives they are) required to attend under section 27 of the Act to give information or evidence to the Commissioner.

Regulation 10 is prescribed for the purposes of subsection 27(4) of the Act and is consistent with regulation 174 of the Income Tax Regulations.