Taxation Law Essay Example | Topics and Well Written Essays - 5000 words

Taxation Law - Essay Example It also works with appropriate departments on policy matters relating to tax and excise. The ATO has the responsibility for administering a range of tax and superannuation legislation is vested by Parliament in the Commissioner of Taxation. The Commissioner's authority to administer each levy is written into the law relating to that levy, as are his general responsibilities, discretionary powers and rights (The Commissioner of Taxation, (n.d.), accessed 25.10.05). In Australia, the Tax Office generally asks the taxpayers to co-operate with it voluntarily and to disclose full information completely and honestly. But Additionally, it has specific information- gathering powers for some taxpayers who should insist that the Tax Office exercise those powers, even where there is no suggestion of tax avoidance - in particular a professional should not voluntarily disclose confidential information to the Tax Office but insist upon its exercise of these powers. To avoid tax evasions, the Tax Office has right of full and free access to all buildings, books and documents for the purpose of the Income Tax Assessment Act, and is allowed to require any person to give it such information, as it requires or to attend and give evidence before it. The Act also states that the occupier of a building or place entered or proposed to be entered by the Tax Office shall provide the Tax Office with all reasonable facilities and assistance for the exercise of its powers. Once an audit commences the taxpayer may want to know how to interact. Just because it is necessary to assist the Tax Office doesn't mean one is subservient to it. How much information should be provided, or withheld because it is protected may be issues, particularly if the matter may end in court. At conclusion of the audit the taxpayer may undertake a Freedom of Information Act search to find out just what the Tax Office thinks of it. Many taxpayers will find that they have underpaid primary tax and, as a result, apart from having to pay that tax, will be subject to penalties. Their solicitor can document payment arrangements with the tax Office and perhaps prepare mortgages and other charges to secure such payments (Rockliffs Solicitors & Barristers, accessed 25.10.05). The Australian Tax Office is responsible to ensure that that nobody steals public money through tax fraud and for this purpose, it has auditors to carry out the investigations but it does not have powers to take tax criminals to the courts. Once it detects a fraud, then it refers the matter to the Federal Police. The Taxation Bill 2002 provides the Australian Tax Office with a broad range of powers to obtain comprehensive information on the administration of the tax laws. The Inspector-General of Australian Tax Office is able to invite submissions from the public or from particular groups of taxpayers or tax professionals, and may receive submissions in confidence. The Inspector-General is also able to hold meetings with taxpayers, tax professionals or their representatives. The Bill also endows the Inspector-General with investigative powers, including the power to compel disclosure of documents and examine witnesses so that the Inspector-Gen