TEL: PRIME MINISTER1
STATEMENT BY THE PRIME MINISTER THE HON 1' J KEATING, MP
ACCESS TO TAX FILES
The Government's decision to maintain the confidentiality of
taxpayers' files despite a request from the West Australian
Commission _ intoCommercial Activities of Government
wasbaed en-ti-relyi on--dice from the Australian Taxation
office. The principal solicitor assisting the commission asked me in
a letter dated April 15, 1991, for an amendment to the
income Tax Assessment Act to enable the commission to
investigate taxpayers' files.
As Treasurer, I sought advice from the Australian Taxation
Office. The Commissioner's reply was received in my office
on May 3, 1991 and is attached to this statement.
Mr Boucher advised that a similar request for access from
the Gyles Royal Commission in New South Wal -es had been
denied some months arlier_, anrferdt hismiueo
that subject.
He was also of the view that the WA commission should be
denied access to income-tax information.-
He wrote that, for reasons of good tax administration, he
was strongly of the view that the current level of secrecy
of income tax information should not be disturbed.
" The decision by the Government to allow the Fitzgerald
inquiry access to income tax information in 1987 was taken
to meet a special need of the time. I would be most
concerned if that decision is seen as a precedent to allow
access for all future State Royal Commissions," he wrote.
This " special need" resulted from the fact that the
Fitzgerald Inquiry preceded legislative measures to allow
State police commissioners to seek tax information from the
Taxation Commissioner within the framework of existing law.
The Commissioner conellided with his recommendation, " that
the Government not support the WA Commission's request for
access to income tax information." T1EL3: . May. 92 18: 43 No. 022 P. 01/ 04
TEL: 13. May. 92 18: 43 NoD. 02_ 2 P. U2/ U-
2
Mr Boucher's advice and irecommuendation were accepted, anld I
signed a letter, dated May 21 and embodying his advice, to
the Royal Commission.
I stressed in that letter that there was a capacity for law
enforcement officers to obtain tax information pertaining to
specific cases.
Any suggestion that there was a party political motivation
in my decision is ludicrous.
I not only accept but I support Mr Boucher's recommendation
because the Income Tax Assessment Act states that tax files
should remain confidential.
The oflus is on those who want access to them to establish
why they should have it, not on the Treasurer or the
Taxation Office to establish why they should not.
Finally, I refuse to accept Mr Templeman's excuse that any
inadequacy or failings of the Commission process are a
result of the view of the Tax Commissioner. I find that
implication both offensive and self-serving.
As I have made clear, If the Commission believes there are
outstanding matters which would be assisted by the
availability of more tax information there is a mechanism
available for these issues to be raised with the Australian
Tax Office.
Indeed, if any authorised law enforcement agency were to
seek tax information to assist them in any investigations or
prosecutions prompted by the report of the R~ oyal Commission
then the Tax Commissioner is empowered to provide such
relevant information under the amendments to the secrecy
provisions of tax law made after the Fitzgerald Royal
Commission. CANBERRA
May 13 1992
TEL: 13. May. 92 18: 43 No. U22 uo/ u4
No.
CONFIDENTiAL
AUSTRALIAN TAXATION OFFICE
MINUTE PAPER
NT Q oo
Treasurer
1 Comria Ave G n 0It
0\ Access to income tax information by the WA Royal Comm nto
Commercial Activities of Government 6
You have received a request from the West Australian Royal Commission into
Commercial Activities of Government ( the WA Commission) that they be
allowed access to income tax information ( copy attached). The WA Commission
would like access alone similar lines to the access given to the Fitzgerald Royal
Commission in 1987. A similar request for access for the Gyles Royal
Commission of New South Wales was recently rejected by the Government ( our
minute No. 177 of 19 December 1990 refers relevant papers also attached).
2. I am also of the view that the WA Commission should be denied access to
income tax information. For reasons of good tax administration, I am still
strongly of the view that the current level of secrecy of income tax information
should not be disturbed.
3. As I said in my minute of 19 December, the continued confidentiality of
income tax information is important to the gathering of such information from
taxpayers and other persons. Those people are, I believe, more likely to disclose
information voluntarily where they can be confident that the use of the
information, other than for tax purposes, is limited.
4. The omnibus provisions for Royal Commissions are longstanding ones
limited to those Commissions established by the Commonwealth, and our
consistent position has been to advise against any widening of them. The
decision by the Government to allow the Fitzgerald Inquiry access to income tax
information in 1987 was taken to meet a special need of the time. I would be
most concerned if that decision is seen as a precedent to allow access for all
future State Royal Commissions. It is our experience that once a Royal
Commissioner makes the claim that he needs information for purposes of his
enquiry, we cannot look behind the request even though it is of a wide ranging
( even " fishing") nature.
I should also point out that we already help certain State ( and other) law
enforcement agencies, within the framework of the existing law, wherever
possible. For example, income tax information may be communicated to State
Police Commissioners in certain circumstances, either on my own initiative or in
response to a request by an authorised law enforcement officer. In the latter
case, the request could be made in the context of an investigation subsequent to
the completion of a Royal Commission, provided the information sought relates
to a particular offence by a specified person " fishing" exercises . l. e not
permitted. INF1 J EtA L
TEL: 13. May. 92 18: 43 No. 022 P. U4/ U4
-2-
Recommendation 6. It is recommended that the Government not support the WA
Commission's request for access to income tax information. A draft reply to the
Commission is attached for your signature, if you approve of the
recommendation. Boucher)
COMMISSIONER OF TAXATION c