Latest News > 08 March 10 - Police get access to tax data for trials

 

POLICE will be given new powers to use people's secret tax details against them in criminal trials, under legislation that weakens the privacy protection over Australians' tax returns.


For the first time, prosecutors will be able to use private tax information as evidence in court for "serious offences", including identity theft, money laundering, drug-smuggling, corporate fraud, sexual slavery and terrorism.


And the Australian Taxation Office will be allowed to hand secret taxpayer information to other government agencies to "prevent or lessen" a serious threat to public health or safety.


Corporate watchdog the Australian Securities & Investments Commission will be given access to individuals' tax details to probe insider trading, misleading and deceptive conduct, and insolvent trading.


The Fair Work Ombudsman also will be able to obtain information on taxpayers "to better target compliance activity".

And state and territory workers' compensation boards will be given tax information obtained under the pay-as-you-go scheme to ensure employers are paying their workers' compensation levies.


The changes are outlined in the Tax Laws Amendment (Confidentiality of Taxpayer Information) Bill, which has been referred to the Senate economics committee for scrutiny.


The legislation would let tax officers hand over taxpayers' information to law enforcement agencies, such as police, Australian Security Intelligence Organisation or ASIC, for the investigation and prosecution of a criminal offence punishable by more than a year's jail. But the Commonwealth Director of Public Prosecutions wants even wider powers.


In a submission to the Senate committee - which is due to report to federal parliament on Thursday - the DPP warns that the definition of serious offence will not cover cases of social security and immigration fraud, which attract jail terms of a year or less.


And the Australian Federal Police, in a submission to the inquiry, notes the changes would have "proven useful" in a number of recent money-laundering prosecutions by showing that the suspects' incomes did not match their alleged proceeds of crime.


Under existing secrecy laws, law-enforcement agencies can use tax information to probe a serious offence - but cannot use it as evidence in court unless the crime involves a tax rort.


"Taxpayer information has proved to be a valuable source of intelligence information for the investigation of activities such as money laundering and social security fraud," the legislation's explanatory memorandum states.



 

 

 

 

 

 

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