On 30 May 2018, the Treasury Laws Amendment (Black Economy Taskforce Measures No. 1) Bill 2018 passed the House of Representatives, with one amendment, and now moves to the Senate for consideration. The Bill was introduced on 7 February 2018.
- Schedule 1 – sales suppression tools – of the Bill proposes to prohibit the production, distribution and possession of sales suppression tools in relation to entities that have Australian tax obligations, including the use of electronic sales suppression tools, to incorrectly keep tax records. The amendments will be to insert new criminal offences in s8WAA – s8WAE of a new Subdivision BAA of Part III, Division 2 of the Tax Administration Act 1953 (TAA) along with other key tax offences). The Bill will also, create provisions that impose ‘administrative penalties’, by adding a s288-125 and s288-130 in TAA Schedule 1 (TAA1). Division 288 of the TAA1 is about ‘Miscellaneous administrative penalties’. DATE OF EFFECT: The amendments would commence from the day after the Bill receives Royal Assent.
- Schedule 2 – courier or cleaning services – the Bill proposes to amend the Tax Administration Act 1953 (TAA 1953) to require entities providing courier or cleaning services that have an Australian Business Number (ABN) to report to the Australian Taxation Office (ATO) information about transactions that involve engaging other entities to undertake those courier or cleaning services for them. The amendment proposes to exempt entities such payments, where the total amount of payments, an entity receives, for courier or cleaning services, are less than 10% of the entity’s GST turnover (ie. occasional couriers or cleaners). These changes will be effected by adding new items 11 and 12 to the table in s396-55 of the TAA1. Division 396 of the TAA1 is about ‘Third party reporting’; s396-55 lists the various ‘tax related’ transactions, that have to be reported to the Commissioner. DATE OF EFFECT: would apply from 1 July 2018.
Study questions (answers available)
- Did this Bill pass the Lower House, over 3 months after it was introduced?
- Does the Bill propose amendments to create offences and administrative penalties for supplying and using ‘sales suppression tools’ (eg. a computer program that just eliminates sales, to under report income that would otherwise be recorded electronically, from the point of sale)?
- Does Schedule 2, to the Bill exclude cleaning and courier payments from the system of reporting tax related transactions to the Commissioner?
- Do both measures start on 1 July 2018?