Editors --- "The Inspector-General of Taxation Act" [2003] AdminRw 15; (2003) 55 Admin Review 52

• The Inspector-General of Taxation Act

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The Inspector-General of Taxation Act

On 27 March 2003 the Inspector-General of Taxation Bill 2002 was passed by the Federal Parliament. The Inspector-General of Taxation Act 2003 establishes an independent statutory office to review tax administration and to report to government with recommendations for improving tax administration. The government was of the view that the Inspector-General of Taxation office was needed in order to adequately resolve systemic problems in tax administration.

The Council was initially concerned that the office would unduly duplicate work performed by the Commonwealth Ombudsman. It also considered that the information-gathering powers proposed for the office of Inspector-General do not include gaining confidential information about individual taxpayers without their consent.

In relation to the first of these concerns, after viewing the Bill, the Council concluded that the Bill did not modify the existing legislative powers of the Commonwealth Ombudsman. The Council also understands that practical arrangements are to be developed between the Ombudsman and the office of the Inspector-General in order to avoid duplication in matters under investigation by either office.

In relation to the second concern, although the Bill provided for wide information-gathering powers there was no provision in it to compel individual taxpayers to disclose confidential individual information. Having regard to the Bill’s focus on reviews of the tax administration system, to the fact that information relating to individual taxpayers is likely to be incidental to a review of the tax administration system, and to clauses 12, 15, 23 and 37 of the Bill, the Council was satisfied that information about individual taxpayers is afforded sufficient protection.