{"id":"C2004A01106","name":"Inspector-General of Taxation Act 2003","slug":"inspector-general-of-taxation-act-2003","collection":"act","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":"28 of 2003","makingDate":null,"administeringDepartment":null,"currentVersion":{"id":24984,"registerId":"commonwealth-C2004A01106-current","compilationNumber":null,"startDate":"2026-04-01","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Short title","content":"#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Objects of this Act","content":"#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Geographical application of this Act","content":"#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"part","heading":"Establishment and functions of the Inspector‑General of Taxation","content":"An Act to provide for the appointment of an Inspector‑General of Taxation, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.\n\n#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.\n\n#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.\n\n#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.\n\n#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.\n\n## Part 2—Establishment and functions of the Inspector‑General of Taxation\n\n### Division 1—Establishment of the Inspector‑General of Taxation\n\n#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.\n\n### Division 2—Functions of the Inspector‑General\n\n#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.\n\n#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.\n\n#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.\n\n#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).\n\n### Division 3—Powers and duties of the Inspector‑General\n\n#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.\n\n#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.\n\n#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.\n\n#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.\n\n## Part 3—Administrative provisions about the Inspector‑General and staff\n\n#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.\n\n#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.\n\n#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.\n\n#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.\n\n#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.\n\n#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.\n\n#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.\n\n#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.\n\n#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.\n\n## Part 4—Information management\n\n### Division 1—Secrecy\n\n#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.\n\n### Division 2—Powers relating to tax file numbers\n\n#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.\n\n#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).\n\n## Part 5—Other matters\n\n#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.\n\n#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.\n\n#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).\n\n#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.\n\n#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.\n\n#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":6},{"sectionNumber":"Division 1","sectionType":"division","heading":"Establishment of the Inspector‑General of Taxation","content":"An Act to provide for the appointment of an Inspector‑General of Taxation, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.\n\n#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.\n\n#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.\n\n#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.\n\n#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.\n\n## Part 2—Establishment and functions of the Inspector‑General of Taxation\n\n### Division 1—Establishment of the Inspector‑General of Taxation\n\n#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.\n\n### Division 2—Functions of the Inspector‑General\n\n#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.\n\n#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.\n\n#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.\n\n#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).\n\n### Division 3—Powers and duties of the Inspector‑General\n\n#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.\n\n#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.\n\n#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.\n\n#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.\n\n## Part 3—Administrative provisions about the Inspector‑General and staff\n\n#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.\n\n#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.\n\n#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.\n\n#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.\n\n#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.\n\n#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.\n\n#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.\n\n#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.\n\n#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.\n\n## Part 4—Information management\n\n### Division 1—Secrecy\n\n#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.\n\n### Division 2—Powers relating to tax file numbers\n\n#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.\n\n#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).\n\n## Part 5—Other matters\n\n#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.\n\n#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.\n\n#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).\n\n#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.\n\n#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.\n\n#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":7},{"sectionNumber":"6","sectionType":"section","heading":"Inspector‑General of Taxation","content":"#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.","sortOrder":8},{"sectionNumber":"Division 2","sectionType":"division","heading":"Functions of the Inspector‑General","content":"An Act to provide for the appointment of an Inspector‑General of Taxation, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.\n\n#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.\n\n#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.\n\n#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.\n\n#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.\n\n## Part 2—Establishment and functions of the Inspector‑General of Taxation\n\n### Division 1—Establishment of the Inspector‑General of Taxation\n\n#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.\n\n### Division 2—Functions of the Inspector‑General\n\n#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.\n\n#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.\n\n#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.\n\n#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).\n\n### Division 3—Powers and duties of the Inspector‑General\n\n#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.\n\n#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.\n\n#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.\n\n#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.\n\n## Part 3—Administrative provisions about the Inspector‑General and staff\n\n#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.\n\n#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.\n\n#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.\n\n#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.\n\n#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.\n\n#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.\n\n#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.\n\n#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.\n\n#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.\n\n## Part 4—Information management\n\n### Division 1—Secrecy\n\n#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.\n\n### Division 2—Powers relating to tax file numbers\n\n#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.\n\n#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).\n\n## Part 5—Other matters\n\n#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.\n\n#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.\n\n#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).\n\n#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.\n\n#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.\n\n#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":9},{"sectionNumber":"7","sectionType":"section","heading":"Functions of the Inspector‑General","content":"#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.","sortOrder":10},{"sectionNumber":"8","sectionType":"section","heading":"Conducting investigations on Inspector‑General’s own initiative","content":"#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.","sortOrder":11},{"sectionNumber":"9","sectionType":"section","heading":"Discretion not to investigate certain complaints","content":"#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.","sortOrder":12},{"sectionNumber":"10","sectionType":"section","heading":"Transferring complaints to the Ombudsman","content":"#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).","sortOrder":13},{"sectionNumber":"Division 3","sectionType":"division","heading":"Powers and duties of the Inspector‑General","content":"An Act to provide for the appointment of an Inspector‑General of Taxation, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.\n\n#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.\n\n#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.\n\n#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.\n\n#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.\n\n## Part 2—Establishment and functions of the Inspector‑General of Taxation\n\n### Division 1—Establishment of the Inspector‑General of Taxation\n\n#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.\n\n### Division 2—Functions of the Inspector‑General\n\n#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.\n\n#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.\n\n#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.\n\n#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).\n\n### Division 3—Powers and duties of the Inspector‑General\n\n#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.\n\n#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.\n\n#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.\n\n#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.\n\n## Part 3—Administrative provisions about the Inspector‑General and staff\n\n#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.\n\n#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.\n\n#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.\n\n#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.\n\n#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.\n\n#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.\n\n#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.\n\n#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.\n\n#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.\n\n## Part 4—Information management\n\n### Division 1—Secrecy\n\n#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.\n\n### Division 2—Powers relating to tax file numbers\n\n#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.\n\n#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).\n\n## Part 5—Other matters\n\n#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.\n\n#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.\n\n#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).\n\n#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.\n\n#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.\n\n#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":14},{"sectionNumber":"15","sectionType":"section","heading":"Certain provisions of the Ombudsman Act 1976 apply","content":"#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.","sortOrder":15},{"sectionNumber":"16","sectionType":"section","heading":"References to a Department or a prescribed authority","content":"#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.","sortOrder":16},{"sectionNumber":"17","sectionType":"section","heading":"Further modifications to how some of those provisions apply","content":"#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.","sortOrder":17},{"sectionNumber":"18","sectionType":"section","heading":"Reports recommending improvements to taxation laws","content":"#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.","sortOrder":18},{"sectionNumber":"Part 3","sectionType":"part","heading":"Administrative provisions about the Inspector‑General and staff","content":"## Part 3—Administrative provisions about the Inspector‑General and staff","sortOrder":19},{"sectionNumber":"28","sectionType":"section","heading":"Appointment","content":"#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.","sortOrder":20},{"sectionNumber":"29","sectionType":"section","heading":"Acting appointment","content":"#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.","sortOrder":21},{"sectionNumber":"30","sectionType":"section","heading":"Remuneration","content":"#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.","sortOrder":22},{"sectionNumber":"31","sectionType":"section","heading":"Leave","content":"#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.","sortOrder":23},{"sectionNumber":"32","sectionType":"section","heading":"Engaging in other paid work","content":"#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.","sortOrder":24},{"sectionNumber":"34","sectionType":"section","heading":"Resignation","content":"#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.","sortOrder":25},{"sectionNumber":"35","sectionType":"section","heading":"Termination of appointment","content":"#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.","sortOrder":26},{"sectionNumber":"36","sectionType":"section","heading":"Staff and consultants","content":"#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.","sortOrder":27},{"sectionNumber":"36A","sectionType":"section","heading":"Application of the finance law","content":"#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.","sortOrder":28},{"sectionNumber":"Part 4","sectionType":"part","heading":"Information management","content":"An Act to provide for the appointment of an Inspector‑General of Taxation, and for related purposes\n\n## Part 1—Preliminary\n\n#### 1 Short title\n\n This Act may be cited as the Inspector‑General of Taxation Act 2003.\n\n#### 2 Commencement\n\n This Act commences on the day after it receives the Royal Assent.\n\n#### 3 Objects of this Act\n\n The objects of this Act are to:\n (a) improve the administration of taxation laws for the benefit of all taxpayers, tax practitioners and other entities; and\n (b) provide independent advice to the government on the administration of taxation laws; and\n (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and\n (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities.\n\n#### 4 Definitions\n\n> In this Act:\n\n> ATO official means:\n\n (a) the Commissioner; or\n (b) a Second Commissioner of Taxation; or\n (c) a Deputy Commissioner of Taxation; or\n (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or\n (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or\n (f) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> Commissioner means the Commissioner of Taxation.\n\n> CSC (short for Commonwealth Superannuation Corporation) has the same meaning as in the Governance of Australian Government Superannuation Schemes Act 2011.\n\n> entity has the same meaning as in the Income Tax Assessment Act 1997.\n\n> Inspector‑General means the Inspector‑General of Taxation referred to in section 6.\n\n> Inspector‑General’s staff means:\n\n (a) the staff referred to in subsection 36(1); and\n (b) any employees or officers whose services are made available as referred to in subsection 36(3); and\n (c) any consultants engaged under subsection 36(4).\n\n> investigation into a complaint means an investigation under paragraph 7(1)(a).\n\n> investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d).\n\n> tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b).\n\n> taxation law has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax file number has the same meaning as in the Income Tax Assessment Act 1997.\n\n> tax official means:\n\n (a) an ATO official; or\n (b) a Board member of the Tax Practitioners Board; or\n (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or\n (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or\n (e) a person who:\n (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and\n (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body.\n\n> taxpayer means a person or other entity who is, was, or may become, liable to pay tax under any taxation law.\n\n> Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009.\n\n#### 5 Geographical application of this Act\n\n This Act applies both within and outside Australia and extends to every external Territory.\n\n## Part 2—Establishment and functions of the Inspector‑General of Taxation\n\n### Division 1—Establishment of the Inspector‑General of Taxation\n\n#### 6 Inspector‑General of Taxation\n\n There is to be an Inspector‑General of Taxation.\n\n### Division 2—Functions of the Inspector‑General\n\n#### 7 Functions of the Inspector‑General\n\n (1) The functions of the Inspector‑General are as follows:\n (a) to investigate action affecting a particular entity that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law; and\n (iii) is the subject of a complaint by that entity to the Inspector‑General;\n (b) to investigate other action that:\n (i) is taken by a tax official; and\n (ii) relates to administrative matters under a taxation law;\n (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating:\n (i) with the public generally; or\n (ii) with particular people or organisations;\n in relation to administrative matters under those laws;\n (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters;\n (e) to investigate action that is the subject of a part of a complaint:\n (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or\n (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act;\n (f) to report on those investigations.\n\n> Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law.\n\n> Note: Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme.\n\n (2) However, these functions do not include investigating:\n (a) rules imposing or creating an obligation to pay an amount under a taxation law; and\n (b) rules dealing with the quantification of such an amount.\n\n#### 8 Conducting investigations on Inspector‑General’s own initiative\n\n (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative.\n\n> Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman.\n\n (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister.\n (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by:\n (a) the Minister; or\n (b) the Commissioner or the Tax Practitioners Board; or\n (c) a resolution of either House, or of both Houses, of the Parliament; or\n (d) a resolution of a Committee of either House, or of both Houses, of the Parliament.\n However, the Inspector‑General is not required to comply with the request.\n\n#### 9 Discretion not to investigate certain complaints\n\n The Inspector‑General may, in his or her discretion:\n (a) decide not to conduct an investigation into a complaint; or\n (b) if he or she has started such an investigation—decide not to continue investigating the action complained about;\n if the Inspector‑General is of the opinion that:\n (c) the complaint is frivolous or vexatious or was not made in good faith; or\n (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or\n (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or\n (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or\n (g) the action came to the complainant’s knowledge more than 12 months before the complaint was made; or\n (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth.\n\n#### 10 Transferring complaints to the Ombudsman\n\n (1) The Inspector‑General must transfer the following to the Ombudsman:\n (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise;\n (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise.\n (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General:\n (a) must consult the Ombudsman about the complaint or about complaints of that kind; and\n (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman.\n (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman:\n (a) notify the complainant in writing of that transfer; and\n (b) give the Ombudsman any related information or documents (other than tax file numbers) that are:\n (i) in the Inspector‑General’s possession; or\n (ii) under the Inspector‑General’s control.\n (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act.\n\n> Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act.\n\n (5) This section does not apply to a complaint if:\n (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or\n (b) subsection 6(17) of that Act applies in relation to the complaint.\n (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act).\n\n### Division 3—Powers and duties of the Inspector‑General\n\n#### 15 Certain provisions of the Ombudsman Act 1976 apply\n\n Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table:\n (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency;\n (b) subsections 3(2) to (6) and subsection 3(7);\n (c) sections 3BA, 3C and 3D;\n (d) subsections 5(2), (3) and (3A);\n (e) section 5A;\n (f) subsections 6(5), (9) to (11) and (16) to (19);\n (g) sections 6C, 7 and 7A;\n (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12);\n (i) sections 9 to 19, other than subsections 16(4) and (5);\n (ia) section 32;\n (j) sections 35AA to 37.\n\n```html\n

How each of those provisions applies in relation to the Inspector‑General

Item

The provision applies as if a reference in that provision to:

were a reference to:

1

the Ombudsman

the Inspector‑General

2

an investigation under the Ombudsman Act 1976

an investigation under this Act

3

a complaint under the Ombudsman Act 1976

a complaint under this Act

4

any of the following:

(a) a Department;

(b) a prescribed authority;

(c) a Department or a prescribed authority

the entity identified under section 16 of this Act

5

another person who is not a Department or prescribed authority

another person who is not:

(a) a Department of State; or

(b) an authority of the Commonwealth

6

either of the following:

(a) principal officer of a Department or prescribed authority;

(b) Secretary of a Department

either of the following:

(a) Commissioner;

(b) Chair of the Tax Practitioners Board

7

an officer of a Department or prescribed authority (that is not a reference to the principal officer)

tax official

8

officer within the meaning of section 35 of the Ombudsman Act 1976

either of the following:

(a) the Inspector‑General;

(b) a member of the Inspector‑General’s staff

9

paragraph 5(1)(b) of the Ombudsman Act 1976

paragraph 7(1)(b) of this Act

10

enactment

either of the following:

(a) Act;

(b) instrument made under an Act

11

in the Ombudsman Act 1976

either of the following:

(a) in the Ombudsman Act 1976;

(b) in this Act.

12

any of the following:

(a) the Minister administering the Ombudsman Act 1976;

(b) the Minister administering the Department;

(c) the responsible Minister;

(d) the Prime Minister

the Minister administering this Act

13

either of the following:

(a) a report under Division 2 of Part II of the Ombudsman Act 1976;

(b) a report under that Act

either of the following:

(a) a report under that Act;

(b) a report under this Act

14

section 35 (other than subsection (5) of that section)

section 37 of this Act

\n```\n\n> Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase “an investigation under this Act” wherever it appears in any of those provisions.\n\n#### 16 References to a Department or a prescribed authority\n\n (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires).\n (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board.\n\n#### 17 Further modifications to how some of those provisions apply\n\n (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private.\n (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person.\n (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section.\n\n> Note: The Inspector‑General can include such recommendations in reports under section 18.\n\n (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue.\n\n#### 18 Reports recommending improvements to taxation laws\n\n (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister:\n (a) identifying a taxation law under which the action being investigated was taken; and\n (b) setting out any recommendations for how that taxation law might be improved; and\n (c) setting out the reasons for those recommendations.\n The report may set out other matters.\n (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report.\n\n## Part 3—Administrative provisions about the Inspector‑General and staff\n\n#### 28 Appointment\n\n Appointment by Governor‑General on full‑time basis\n (1) The Inspector‑General is to be appointed by the Governor‑General by written instrument. The appointment is to be on a full‑time basis.\n Obligation to fill vacancy as soon as practicable\n (2) Whenever a vacancy occurs in the office of Inspector‑General, an appointment must be made to the office as soon as practicable.\n Period of appointment\n (3) The Inspector‑General holds office for the period specified in the instrument of appointment. The period must not exceed 5 years.\n Terms and conditions not covered by this Act\n (4) The Inspector‑General holds office on the terms and conditions (if any) in relation to matters not covered by this Act that are determined by the Governor‑General.\n\n#### 29 Acting appointment\n\n The Minister may appoint a person to act as the Inspector‑General:\n (a) during a vacancy in the office of Inspector‑General (whether or not an appointment has previously been made to the office); or\n (b) during any period, or during all periods, when the Inspector‑General is absent from duty or from Australia, or is, for any reason, unable to perform the duties of the office.\n\n> Note: For rules that apply to acting appointments, see sections 33AB and 33A of the Acts Interpretation Act 1901.\n\n#### 30 Remuneration\n\n (1) The Inspector‑General is to be paid the remuneration that is determined by the Remuneration Tribunal. If no determination of that remuneration by the Tribunal is in operation, the Inspector‑General is to be paid the remuneration that is prescribed.\n (2) The Inspector‑General is to be paid the allowances that are prescribed.\n (3) This section has effect subject to the Remuneration Tribunal Act 1973.\n\n#### 31 Leave\n\n (1) The Inspector‑General has the recreation leave entitlements that are determined by the Remuneration Tribunal.\n (2) The Minister may grant the Inspector‑General leave of absence, other than recreation leave, on the terms and conditions as to remuneration or otherwise that the Minister determines.\n\n#### 32 Engaging in other paid work\n\n The Inspector‑General must not engage in paid employment outside the duties of his or her office without the Minister’s approval.\n\n#### 34 Resignation\n\n The Inspector‑General may resign his or her appointment by giving the Governor‑General a written resignation.\n\n#### 35 Termination of appointment\n\n Obligation to terminate on certain grounds\n (1) The Governor‑General must terminate the appointment of the Inspector‑General if the Inspector‑General:\n (a) becomes bankrupt; or\n (b) applies to take the benefit of any law for the relief of bankrupt or insolvent debtors; or\n (c) compounds with his or her creditors; or\n (d) assigns his or her remuneration for the benefit of his or her creditors; or\n (e) is absent from duty, except on leave of absence, for 14 consecutive days or for 28 days in any 12 months; or\n (f) fails to comply with section 32 (engaging in other paid work); or\n (g) fails, without reasonable excuse, to comply with section 29 of the Public Governance, Performance and Accountability Act 2013 (which deals with the duty to disclose interests) or rules made for the purposes of that section.\n Discretion to terminate for misbehaviour or physical or mental incapacity\n (2) Subject to subsections (3), (4) and (5), the Governor‑General may terminate the appointment of the Inspector‑General on the ground of misbehaviour or physical or mental incapacity.\n (3) If the Inspector‑General:\n (a) is an eligible employee for the purposes of the Superannuation Act 1976; and\n (b) has not reached his or her maximum retiring age (within the meaning of that Act);\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 54C of that Act.\n (4) If the Inspector‑General:\n (a) is a member of the superannuation scheme established by deed under the Superannuation Act 1990; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given a certificate under section 13 of that Act.\n (5) If the Inspector‑General:\n (a) is an ordinary employer‑sponsored member of PSSAP, within the meaning of the Superannuation Act 2005; and\n (b) is under 60 years of age;\n his or her appointment cannot be terminated on the ground of physical or mental incapacity unless CSC has given an approval and certificate under section 43 of that Act.\n\n#### 36 Staff and consultants\n\n Staff engaged under the Public Service Act\n (1) The staff required to assist the Inspector‑General in the performance of the Inspector‑General’s functions are to be persons engaged under the Public Service Act 1999.\n (2) For the purposes of the Public Service Act 1999:\n (a) the Inspector‑General and the APS employees so assisting the Inspector‑General together constitute a Statutory Agency; and\n (b) the Inspector‑General is the Head of that Statutory Agency.\n Secondments and similar arrangements\n (3) The Inspector‑General may arrange with an Agency Head (within the meaning of the Public Service Act 1999) for the services of employees or officers of the Agency to be made available to the Inspector‑General.\n Consultants\n (4) The Inspector‑General may, on behalf of the Commonwealth, engage persons having suitable qualifications and experience as consultants to the Inspector‑General. The terms and conditions of the engagement of a person are such as are determined by the Inspector‑General.\n\n#### 36A Application of the finance law\n\n For the purposes of the finance law (within the meaning of the Public Governance, Performance and Accountability Act 2013):\n (a) the following group of persons is a listed entity:\n (i) the Inspector‑General;\n (ii) the Inspector‑General’s staff; and\n (b) the listed entity is to be known as the Inspector‑General of Taxation; and\n (c) the Inspector‑General is the accountable authority of the listed entity; and\n (d) the persons referred to in paragraph (a) are officials of the listed entity; and\n (e) the purposes of the listed entity include the functions of the Inspector‑General referred to in section 7.\n\n## Part 4—Information management\n\n### Division 1—Secrecy\n\n#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.\n\n### Division 2—Powers relating to tax file numbers\n\n#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.\n\n#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).\n\n## Part 5—Other matters\n\n#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.\n\n#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.\n\n#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).\n\n#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.\n\n#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.\n\n#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":29},{"sectionNumber":"37","sectionType":"section","heading":"Secrecy","content":"#### 37 Secrecy\n\n Definitions\n (1) In this section:\n\n> person to whom this section applies means a person who is or was:\n\n (a) the Inspector‑General; or\n (b) a member of the Inspector‑General’s staff.\n\n> protected document means a document that:\n\n (a) is obtained or made by a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) contains information relating to an entity’s affairs.\n\n> protected information means information that:\n\n (a) is disclosed to, or obtained by, a person to whom this section applies in the course of, or because of, the person’s functions, powers or duties under or in relation to this Act; and\n (b) relates to an entity’s affairs.\n Protected information may be recorded or disclosed only for purposes of this Act\n (2) A person to whom this section applies commits an offence if:\n (a) the person:\n (i) makes a copy or other record of any protected information or of all or part of any protected document; or\n (ii) discloses any protected information to another person or to a court or tribunal; or\n (iii) produces all or part of a protected document to another person or to a court or tribunal; and\n (b) in doing so, the person is not acting in the course of performing or exercising functions, powers or duties under or in relation to this Act.\n\nPenalty: Imprisonment for 2 years.\n\n Courts generally cannot require protected information to be disclosed etc.\n (3) A person to whom this section applies cannot be required to:\n (a) disclose any protected information to a court or tribunal; or\n (b) produce all or part of a protected document to a court or tribunal;\n unless that disclosure or production is necessary for the purpose of carrying into effect the provisions of this Act.","sortOrder":31},{"sectionNumber":"37B","sectionType":"section","heading":"Requesting a person’s tax file number","content":"#### 37B Requesting a person’s tax file number\n\n (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person’s tax file number to the Inspector‑General.\n (2) The Inspector‑General may provide the person’s tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint.","sortOrder":33},{"sectionNumber":"37C","sectionType":"section","heading":"Investigations under this Act","content":"#### 37C Investigations under this Act\n\n The Commissioner may quote a person’s tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a).","sortOrder":34},{"sectionNumber":"Part 5","sectionType":"part","heading":"Other matters","content":"## Part 5—Other matters","sortOrder":35},{"sectionNumber":"38","sectionType":"section","heading":"Reporting breaches of duty or misconduct","content":"#### 38 Reporting breaches of duty or misconduct\n\n If the Inspector‑General forms the opinion either before, during or after conducting an investigation:\n (a) that a person who is or was a tax official has engaged in misconduct; and\n (b) that the evidence is of sufficient weight to justify the Inspector‑General doing so;\n the Inspector‑General must report the evidence to:\n (c) if the person is or was the Commissioner—the Minister; or\n (d) otherwise—the Commissioner.","sortOrder":36},{"sectionNumber":"39","sectionType":"section","heading":"Victimisation","content":"#### 39 Victimisation\n\n Actually causing detriment to another person\n (1) A person (the first person) commits an offence if:\n (a) the first person engages in conduct; and\n (b) the first person’s conduct causes any detriment to another person (the second person); and\n (c) the first person intends that his or her conduct cause detriment to the second person; and\n (d) the detriment is caused without the consent of the second person; and\n (e) the first person engages in his or her conduct because the second person or a third person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n Threatening to cause detriment to another person\n (2) A person (the first person) commits an offence if:\n (a) the first person makes to another person (the second person) a threat to cause any detriment to the second person or to a third person; and\n (b) the first person:\n (i) intends the second person to fear that the threat will be carried out; or\n (ii) is reckless as to causing the second person to fear that the threat will be carried out; and\n (c) the first person makes the threat because a person:\n (i) gave, or may give, information when requested or required to do so under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act); or\n (ii) produced, or may produce, a document when requested or required to do so under that section; or\n (iii) attended, or may attend, to answer questions when requested or required to do so under that section; or\n (iv) answered, or may answer, questions while attending to answer questions when requested or required to do so under that section; or\n (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act.\n\nPenalty: Imprisonment for 6 months.\n\n (3) For the purposes of subsection (2), a threat may be:\n (a) express or implied; or\n (b) conditional or unconditional.\n (4) In a prosecution for an offence against subsection (2), it is not necessary to prove that the person threatened actually feared that the threat would be carried out.","sortOrder":37},{"sectionNumber":"40","sectionType":"section","heading":"Protection from liability for Minister, Inspector‑General etc.","content":"#### 40 Protection from liability for Minister, Inspector‑General etc.\n\n (1) This section applies to the following persons (protected persons):\n (a) the Minister;\n (b) the Inspector‑General;\n (c) a person acting under the Inspector‑General’s authority.\n (2) A protected person is not liable to civil proceedings for loss, damage or injury of any kind suffered by another person as a result of the performance or exercise, in good faith, of the protected person’s functions, powers or duties under or in relation to this Act or the Ombudsman Act 1976 (as it applies because of section 15 of this Act).","sortOrder":38},{"sectionNumber":"41","sectionType":"section","heading":"Annual report","content":"#### 41 Annual report\n\n (1) The annual report prepared by the Inspector‑General and given to the Minister under section 46 of the Public Governance, Performance and Accountability Act 2013 for a period must include details of any directions given by the Minister under subsection 8(2) of this Act during the period.\n (2) The report must also include:\n (a) the number of complaints received by the Inspector‑General under this Act during the period; and\n (b) the number of investigations under paragraph 7(1)(a) or (b):\n (i) started during the period; and\n (ii) completed during the period; and\n (c) the number of investigations into systemic issues:\n (i) started during that period; and\n (ii) completed during that period; and\n (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and\n (e) details of the circumstances in which each of those requirements under section 9 of that Act was made.","sortOrder":39},{"sectionNumber":"42","sectionType":"section","heading":"Delegation of certain powers by the Inspector‑General","content":"#### 42 Delegation of certain powers by the Inspector‑General\n\n (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General’s staff:\n (a) the Inspector‑General’s powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General’s powers under sections 15 to 19 of that Act;\n (b) the Inspector‑General’s powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement).\n (1A) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under sections 9 and 10 of this Act (about not investigating, or transferring, complaints) to a member of the Inspector‑General’s staff who is:\n (a) either:\n (i) a member of the staff referred to in subsection 36(1); or\n (ii) an employee or officer whose services are made available as referred to in subsection 36(3); and\n (b) either:\n (i) an SES employee or acting SES employee; or\n (ii) an APS employee who is classified as Executive Level 1 or 2 or equivalent, or acting in a position usually occupied by an APS employee who is so classified.\n (1B) The Inspector‑General may, in writing, delegate any of the Inspector‑General’s powers under section 37B of this Act (about requesting and providing tax file numbers) to:\n (a) a member of the staff referred to in subsection 36(1); or\n (b) an employee or officer whose services are made available as referred to in subsection 36(3).\n (1C) The Inspector‑General may delegate a power to a person under subsection (1), (1A) or (1B) only if the Inspector‑General is satisfied that the person has appropriate qualifications, training or experience to exercise the power.\n (2) In exercising powers under a delegation under subsection (1), (1A) or (1B) of this section, a delegate must comply with any written directions of the Inspector‑General.","sortOrder":40},{"sectionNumber":"43","sectionType":"section","heading":"Regulations","content":"#### 43 Regulations\n\n General power to make regulations\n (1) The Governor‑General may make regulations prescribing matters:\n (a) required or permitted by this Act to be prescribed; or\n (b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.\n Regulations about fees and allowances for expenses\n (2) Without limiting subsection (1), the regulations may provide for a person who attends before the Inspector‑General, or a member of the Inspector‑General’s staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act) to be paid, in relation to that attendance, fees and allowances for expenses fixed by, or calculated in accordance with, the regulations.","sortOrder":41}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[{"type":"circular_definition","section":"4 (definition of 'tax administration action') / 7(1)(e)","severity":"medium","reasoning":"If a complaint is transferred from the Ombudsman under s.6D(4)(b) of the Ombudsman Act 1976, it is investigated under 7(1)(e). That investigation is not an 'investigation into a complaint' (defined as 7(1)(a) only) and not an 'investigation into a systemic issue' (7(1)(c) or (d) only). It also falls outside 'tax administration action'. This leaves 7(1)(e) investigations in a definitional limbo — no defined category applies to them, which may affect which procedural rules, secrecy provisions, and annual reporting obligations apply.","confidence":0.78,"description":"The definition of 'tax administration action' refers only to paragraphs 7(1)(a) and 7(1)(b), but paragraph 7(1)(e) creates a distinct investigation function for complaints transferred from the Ombudsman. Actions investigated under 7(1)(e) are not 'tax administration action' under the definition, yet the transfer mechanism in s.10 is premised on distinguishing tax administration action from other action. This creates a definitional gap where Ombudsman-transferred complaints occupy an undefined category."},{"type":"self_contradicting","section":"8(2) and 8(3)","severity":"medium","reasoning":"Section 3(b) states an object of the Act is to provide 'independent advice to the government'. Sections 8(2) and 8(3) together undermine this by enabling the executive to compel investigations while nominally preserving independence through an optional request mechanism that can be bypassed at will. The Inspector-General's independence is structurally compromised when the Minister can mandate what to investigate.","confidence":0.82,"description":"The Minister can both direct the Inspector-General to conduct an investigation under s.8(2) (mandatory compliance) and request the same investigation under s.8(3) (no compliance required). Since a direction and a request can cover identical subject matter, the Minister has full discretion to choose which mechanism to use, effectively allowing the government to make any 'request' mandatory simply by relabelling it a 'direction'. This renders the independence safeguard in s.8(3) illusory."},{"type":"self_contradicting","section":"9(h)","severity":"medium","reasoning":"The Act's object is to improve administration for the benefit of all taxpayers. Requiring taxpayers to first litigate before accessing a free administrative oversight body contradicts this purpose. Wealthy complainants can comply; others cannot, creating unequal access to a body notionally available to 'all taxpayers'.","confidence":0.75,"description":"The Inspector-General may decline to investigate a complaint on the ground that the complainant 'has not exercised a right to cause the action to be reviewed by a court or tribunal'. This ground can apply even where the court or tribunal review right is prohibitively expensive, time-limited, or otherwise inaccessible. Combined with s.9(f) (must first raise with Commissioner), a complainant could be required to exhaust administrative channels AND judicial review before the Inspector-General — the oversight body established to assist taxpayers — will act. This undermines the Act's stated object in s.3(a)."},{"type":"other","section":"17(3) and 18(1)","severity":"low","reasoning":"While not strictly absurd, the prohibition in s.17(3) on recommending legislative changes during investigation reports, combined with the post-completion requirement of s.18, means urgent law reform recommendations must await completion of potentially lengthy investigations. The practical effect may delay advice on time-sensitive legislative defects.","confidence":0.65,"description":"Section 17(3) prohibits the Inspector-General from recommending changes to taxation laws in reports made under ss.15-17 of the Ombudsman Act 1976 (as applied), and the note says such recommendations can be included in s.18 reports. However, s.18(1) only permits a s.18 report 'after completing an investigation'. The Inspector-General therefore cannot make law reform recommendations mid-investigation, even if urgent systemic legislative flaws are identified. The channelling mechanism creates an artificial sequencing constraint on the exercise of an advisory function."},{"type":"self_contradicting","section":"17(4)","severity":"medium","reasoning":"Systemic issue investigations are directed at broader public benefit and were identified as a distinct and important function of the Inspector-General. Reducing the deterrent for obstructing these broader investigations, compared to individual complaint investigations, creates a perverse incentive structure inconsistent with the Act's objects.","confidence":0.8,"description":"Section 17(4) reduces the penalty for non-compliance from the standard Ombudsman Act 1976 penalty to 6 months imprisonment specifically for refusals relating to investigations into systemic issues. This means a person who obstructs an investigation into a widespread systemic problem affecting all taxpayers faces a lesser penalty than a person obstructing an investigation into an individual complaint. The penalty structure is inverted relative to the severity of the conduct obstructed."},{"type":"impossible_compliance","section":"43(2)","severity":"high","reasoning":"The drafter appears to have omitted words connecting the reference to the Ombudsman Act 1976 to the operative part of the subsection. As written, a court or administrator cannot determine the precise circumstances in which fees are payable, making the regulation-making power in s.43(2) potentially invalid or unenforceable for vagueness.","confidence":0.9,"description":"Section 43(2) is grammatically incomplete and legally incoherent. It provides for fees for 'a person who attends before the Inspector-General, or a member of the Inspector-General's staff, the Ombudsman Act 1976 (as it applies because of section 15 of this Act)'. The phrase 'the Ombudsman Act 1976 (as it applies because of section 15 of this Act)' is syntactically orphaned — it is unclear whether it qualifies 'staff', whether it identifies under which Act the attendance occurs, or whether a phrase such as 'pursuant to' or 'under' has been omitted. The provision as drafted is not capable of coherent legal operation."},{"type":"circular_definition","section":"4 (definition of 'ATO official', paragraph (e)) and 4 (definition of 'tax official', paragraph (d))","severity":"low","reasoning":"The definition of ATO official in para (e) refers to engagement by 'another ATO official', and ATO official is itself being defined. While this is a common drafting technique for chain-of-engagement scenarios, it is technically circular and requires a base case (paras (a)-(d)) to avoid infinite regress. The exclusion in tax official para (d) of ATO officials from the parallel chain further complicates whether gaps exist at the boundary.","confidence":0.6,"description":"Both definitions include persons 'engaged on behalf of the Commonwealth by another [ATO official / tax official] to provide services related to the administration of taxation laws'. Since ATO officials are a subset of tax officials, and the tax official definition in (d) specifically excludes ATO officials from the cross-engagement chain, there is a potential gap: a person engaged by an ATO official on behalf of the Commonwealth is an ATO official under para (e), but is that person also a tax official? Under tax official para (d), engagement must be by 'another tax official (other than an ATO official)'. A person engaged by an ATO official falls under ATO official para (e), making them an ATO official, and hence also a tax official under tax official para (a). The layered self-referential definitions create interpretive difficulty but technically resolve through para (a), though the circularity is inelegant and potentially confusing."},{"type":"other","section":"38","severity":"low","reasoning":"While not a logical contradiction within the Act itself, the absence of any mandated downstream process following a misconduct report about the Commissioner creates an accountability gap. The Inspector-General's duty is triggered but the executive recipient has no corresponding statutory duty, which may undermine the practical effect of the provision.","confidence":0.7,"description":"Section 38 requires the Inspector-General to report evidence of misconduct by a former or current Commissioner to the Minister. However, there is no corresponding obligation on the Minister to act, refer the matter, or even acknowledge receipt. The mandatory reporting obligation leads to a procedural dead end — no consequence or further process is mandated upon receipt by the Minister, rendering the reporting obligation potentially hollow."}],"contradictions":[{"severity":"high","section_a":"3(b) (object: provide independent advice to government)","section_b":"8(2) (Minister may direct investigations)","confidence":0.85,"description":"The Act's stated object of providing 'independent advice to the government' is structurally compromised by the Minister's power to direct the Inspector-General to conduct specific investigations. An oversight body subject to mandatory direction by the executive it is meant to advise and scrutinise cannot be genuinely independent in those directed matters."},{"severity":"medium","section_a":"10(2)(b) (Inspector-General may transfer tax administration action complaints to Ombudsman if more appropriate)","section_b":"10(1) (Inspector-General must transfer non-tax administration action complaints to Ombudsman)","confidence":0.72,"description":"Section 10(1) mandates transfer of complaints wholly outside tax administration action, while s.10(2)(b) permits voluntary transfer of the tax administration action part of a mixed complaint. This creates an asymmetry: the Inspector-General must transfer matters outside their core jurisdiction, but may also transfer matters inside their core jurisdiction if satisfied the Ombudsman is better placed. The Inspector-General could therefore use s.10(2)(b) to transfer away their primary jurisdiction in individual cases, potentially defeating the legislative purpose of establishing a specialist tax oversight body."},{"severity":"medium","section_a":"9(f) (discretion to decline complaint if not first raised with Commissioner)","section_b":"3(c) (object: investigate complaints by taxpayers about administration of taxation laws)","confidence":0.8,"description":"Section 9(f) allows the Inspector-General to refuse to investigate if the complainant has not first raised the matter with the Commissioner — the very official whose conduct may be complained about. Requiring a complainant to first approach the subject of their complaint before accessing an independent oversight body directly contradicts the object of providing independent complaint investigation, and creates an inherent conflict of interest in the pre-screening step."},{"severity":"medium","section_a":"37(3) (courts generally cannot require disclosure of protected information)","section_b":"37(2) (offence to disclose protected information except in performing functions under this Act)","confidence":0.73,"description":"Section 37(3) carves out a narrow exception permitting courts to require disclosure only when 'necessary for carrying into effect the provisions of this Act'. Section 37(2) criminalises disclosure not in the course of functions under the Act. Together, these provisions create a situation where the Inspector-General's staff could theoretically be compelled by a court under s.37(3) to disclose information, yet face criminal liability under s.37(2) for the same disclosure if it is later determined that the disclosure was not 'in the course of performing functions under the Act'. The overlap between the compelled-disclosure exception and the criminal prohibition is not clearly reconciled."},{"severity":"low","section_a":"42(1C) (Inspector-General may only delegate if satisfied person has appropriate qualifications)","section_b":"42(1B) (Inspector-General may delegate tax file number powers to any staff member under s.36(1) or s.36(3))","confidence":0.62,"description":"Section 42(1C) imposes a qualification/training/experience test on all delegations under subsections (1), (1A), and (1B). However, s.42(1B) permits delegation of tax file number handling powers to any staff member or secondee without specifying any minimum level, while s.42(1A) restricts complaint-handling delegation to SES or EL1/2 officers. The qualification threshold in s.42(1C) theoretically applies to s.42(1B) delegations, but the absence of any classification floor in s.42(1B) — contrasted with the explicit floor in s.42(1A) — creates ambiguity about whether the s.42(1C) test adds any meaningful constraint for s.42(1B) delegations, or whether the structural difference between (1A) and (1B) reflects an intentional but unexplained policy inconsistency."},{"severity":"low","section_a":"28(2) (obligation to fill vacancy as soon as practicable)","section_b":"29(a) (Minister may appoint acting Inspector-General during a vacancy)","confidence":0.68,"description":"Section 28(2) imposes an obligation to fill any vacancy 'as soon as practicable', but s.29(a) expressly contemplates an acting appointment 'whether or not an appointment has previously been made to the office'. The combination means there is no temporal limit on how long an acting appointment may persist, potentially allowing an indefinite 'temporary' arrangement that satisfies s.29 while indefinitely deferring the s.28(2) obligation. The obligation to appoint permanently is not enforceable against any identified person and has no sanction."}]},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This version of the Act sets out a narrowly focused independent oversight function for taxation administration and does not materially expand beyond the original objects in section 3. It creates a standalone Inspector‑General with Ombudsman‑style powers adapted for tax matters (ss6–7, s15). Some provisions broaden operational reach (e.g. own‑initiative systemic investigations s8(1) and the ability to investigate systems as well as individual actions s7(c)–(d)) but those features are within the Act’s original stated objects and do not represent a substantive scope change beyond the Act’s design."},"complexity_factors":["Approximately 15 defined terms in the interpretation section (s4) that determine the Act’s coverage (e.g. ATO official, tax official, taxpayer, Inspector‑General’s staff).","Extensive cross‑references and partial application of many provisions of the Ombudsman Act 1976 (s15) with a 14‑item mapping table and additional modifications (ss15–17).","Multiple discretionary decision points: refusal/stop investigations (s9), Minister direction and requests (s8), transfer obligations to the Ombudsman (s10).","Nested exceptions and carve‑outs (e.g. functions exclude rules imposing tax liability or quantification matters (s7(2)); s17 modifies how Ombudsman Act provisions apply).","Delegation regime with graded eligibility and training/experience condition (s42(1), (1A)–(1C)), plus written‑direction requirements for delegates.","Criminal and civil penalty provisions with differing penalties (secrecy: 2 years s37(2); victimisation: 6 months s39), increasing legal complexity.","Confidentiality rules that restrict court production of protected information except for Act‑related purposes (s37(3)), adding procedural complexity for litigated matters.","Governance and staffing interactions across multiple statutes (Public Service Act 1999, Remuneration Tribunal Act 1973, PGPA Act 2013, various superannuation Acts referenced in s35), creating multiple compliance touchpoints.","Reporting timing and publication obligations (report to Minister; Minister must publish within 25 sitting days—s18(2)) that interact with executive processes.","Powers to request/transfer tax file numbers (ss37B–37C) with limited permissive wording and information‑sharing constraints."],"plain_english_summary":"**What this law does (mechanically)\n\n- Creates a statutory office called the Inspector‑General of Taxation (the Inspector‑General) and staff to assist the office (s6, s36).\n- Gives the Inspector‑General functions to investigate: individual complaints about administrative action taken by tax officials; other action by tax officials that relates to administration of taxation laws; systems used by the Australian Taxation Office (ATO) or the Tax Practitioners Board for administering tax laws; and certain statutory systems insofar as they deal with administrative matters (s7).\n- Allows the Inspector‑General to start systemic investigations on their own initiative, to be directed to investigate by the Minister for systemic matters, and to receive requests from a range of bodies (s8).\n- Applies many investigatory powers and procedural rules from the Ombudsman Act 1976 to the Inspector‑General, with tailored modifications set out in a mapping table (s15–s17).\n- Establishes confidentiality and secrecy rules for documents and information obtained by the Inspector‑General and staff, including criminal penalties for unauthorised disclosure and limits on courts requiring production of protected information (s37).\n- Provides limited powers and procedures around tax file numbers for complainants and the Commissioner to assist investigations (ss37B–37C).\n- Sets out appointment, terms, removal, remuneration and allowed non‑work activities for the Inspector‑General; staff must be public servants and the Inspector‑General is treated as the head of a statutory agency for finance law purposes (ss28–36A).\n- Creates reporting duties: the Inspector‑General may make reports recommending changes to taxation law after an investigation (s18), and the Minister must cause such reports to be made publicly available within a set timetable (s18(2)); the Inspector‑General must include certain operational statistics in the annual report (s41).\n- Contains offence provisions against victimisation of people who give information in investigations, and gives protected persons (Minister, Inspector‑General, persons acting under authority) immunity from civil liability for acts done in good faith (ss39–40).\n- Allows the Governor‑General to make regulations, including fees/allowances for people who attend before the Inspector‑General (s43).\n\nWho it affects\n\n- Individual taxpayers and entities: they can complain about administrative conduct by tax officials and have certain protections when they provide information (s7, ss37B–37C, s39).\n- Tax practitioners and the Tax Practitioners Board: they are within the Act's definition of affected parties and systems (s3, s4, s7).\n- ATO officials and other tax officials (including Tax Practitioners Board members): they are the subjects of investigations and have statutory duties to provide information under applied Ombudsman Act powers (s4, s15).\n- The Commissioner of Taxation and the Minister: the Commissioner is both a respondent to oversight and a source of information; the Minister can direct systemic investigations and receives reports (ss8, 18, 38).\n- Commonwealth (budget/cost bearers): establishing and running the office, staffing, and commissioning consultants are Commonwealth costs (ss36, 36A).\n\nWhy it matters (official purpose and practical trade‑offs)\n\n- Official purpose: the Act aims to improve administration of taxation laws and provide independent advice and complaint investigation mechanisms (s3).\n\n- Mechanisms that implement that purpose: a dedicated statutory office with investigatory powers, access to ATO and Tax Practitioners Board systems, ability to publish reports with recommendations (ss6–7, 15, 18).\n\n- Trade‑offs and implementation costs:\n - Administrative/compliance cost to the ATO and Tax Practitioners Board arising from investigations and requirements to provide information (s15 as applied; s36(3)).\n - The Inspector‑General operates with Ombudsman‑style investigatory powers but with statutory secrecy protections (s37). That confidentiality protects contributor privacy but limits judicial access to materials unless necessary for carrying out this Act (s37(3)).\n - The Minister may direct investigations into systemic matters (s8(2)), which creates a mechanism for political direction; the Inspector‑General retains discretion in other requests (s8(3)) and may decline frivolous or stale complaints (s9).\n - Reporting to the Minister is required; the Minister must publish IG reports within a defined window (s18(2)). That increases transparency but routes reports through the executive (s18).\n - The Act permits engaging consultants and secondments (s36(3)–(4)), so the Inspector‑General can scale capacity quickly but at additional outlays.\n\n- Incentives and behaviour change:\n - Gives taxpayers and practitioners a formal independent review channel, which may reduce direct escalation to courts or political channels (s7, s10).\n - Introduces deterrents against victimisation of people who assist investigations (s39) and criminalises certain unauthorised disclosures by IG staff (s37(2)).\n - Provides immunity for officials acting in good faith, reducing legal risk for investigators (s40).\n\nPractical implementation risks and burdens\n\n- Complexity from cross‑legislative interaction: many powers are applied from the Ombudsman Act and modified (s15–17). Implementing and interpreting those cross‑references requires legal expertise.\n- Discretion points: the IG has multiple discretionary cutoffs (declining investigations under s9; delegations under s42), which creates uneven case handling risk unless supported by clear internal practice guidance.\n- Confidentiality limits may frustrate complainants who expect court access to investigatory material; the Act narrows courts' power to compel production except where necessary to give effect to the Act (s37(3)).\n\nWho pays, who decides, and what behaviour is changed\n\n- The Commonwealth funds the Inspector‑General's office and related staff/consultants (s36, s36A).\n- The Inspector‑General decides what to investigate within statutory functions and discretion (ss7–9); the Minister can direct systemic investigations (s8(2)) and receives reports (s18). The Ombudsman interacts through transfer rules (s10; see s15 mapping).\n- Behavioural effects: tax officials face an independent overseer with power to investigate administrative conduct; taxpayers gain a formal complaint route but must generally raise issues first with the Commissioner or Board before an IG investigation proceeds (s9(f))."},"kimi_summary":{"_metrics":{"completionTokens":569},"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose as established in 2003. The scope remains focused on administrative oversight of taxation matters, with no significant expansion into substantive tax law or areas beyond the ATO and Tax Practitioners Board."},"complexity_factors":["Extensive cross-referencing to the Ombudsman Act 1976 with 14 modification rules in a detailed table","Nested definitions: 'tax official' includes 'ATO official' which itself has 6 sub-definitions","Multiple conditional triggers for investigations (complaint-based, own-motion, Minister-directed, requested by various entities)","Complex secrecy provisions with defined terms 'protected information' and 'protected document' and exceptions","Superannuation-related termination conditions requiring certificates from CSC under three different Acts","Delegation provisions with three separate subsections setting different eligibility criteria for different powers","Transfer mechanisms between Inspector-General and Ombudsman with multiple exceptions and deeming provisions"],"plain_english_summary":"This Act creates an **Inspector‑General of Taxation** — an independent watchdog who investigates complaints about how the Australian Taxation Office (ATO) and the Tax Practitioners Board handle tax matters.\n\n**What the Inspector‑General can do:**\n- **Investigate individual complaints** from taxpayers, tax agents, or businesses about unfair or improper treatment by tax officials\n- **Launch own‑motion investigations** into systemic problems — like flawed ATO processes that affect many people\n- **Recommend improvements** to tax laws and administration to the government\n- **Transfer complaints** to the Commonwealth Ombudsman if they’re not about tax administration\n\n**What the Inspector‑General *cannot* do:**\n- Change how much tax you owe or how it’s calculated — they only look at *administrative* actions (how the tax office behaves), not the tax rules themselves\n\n**Key protections:**\n- **Secrecy rules** — staff face up to 2 years jail for improperly disclosing taxpayer information\n- **Anti‑victimisation** — it’s a crime to punish someone for cooperating with an investigation\n- **Good faith immunity** — the Inspector‑General and staff are protected from lawsuits for honest mistakes\n\n**Who can trigger investigations:**\n- The Minister *must* direct systemic investigations when requested\n- Parliament, parliamentary committees, the Commissioner of Taxation, or the Tax Practitioners Board can *request* systemic investigations (but the Inspector‑General can refuse)\n\n**How it works in practice:**\nThe Act borrows most of its investigative powers from the *Ombudsman Act 1976* through a complex set of modifications — essentially treating the Inspector‑General like a specialised tax ombudsman."},"summary":{"complexity_score":7,"scope_assessment":{"changed":true,"description":"The original Act (2003) focused on the ATO only. Over time, the scope expanded significantly to include the Tax Practitioners Board and its officials following the creation of the tax agent services regulatory regime under the Tax Agent Services Act 2009. The definition of 'tax official' and the IGT's investigative functions were broadened accordingly, making the TPB a co-subject of oversight alongside the ATO."},"complexity_factors":["Heavy reliance on incorporation by reference — large sections of the Ombudsman Act 1976 are 'switched on' and modified via a 14-item substitution table, meaning the reader must cross-reference another Act entirely to understand the IGT's powers","Multiple overlapping jurisdictional boundaries between the IGT and the Ombudsman, requiring careful parsing of when complaints must, may, or cannot be transferred","Layered definitions — key terms like 'ATO official', 'tax official', 'tax administration action', and 'entity' each have multi-limbed definitions, some borrowed from other Acts","Distinction between mandatory and discretionary investigation powers (must vs. may) across several sections with different triggers","Superannuation-linked termination provisions that require knowledge of three separate superannuation Acts (1976, 1990, 2005)","Tiered delegation regime with different staff classification requirements depending on which power is being delegated","Structural repetition in the source document (multiple full reprints of the same sections) creates confusion about what is actually operative","Interplay with multiple other Acts: Public Service Act 1999, Public Governance Performance and Accountability Act 2013, Tax Agent Services Act 2009, Remuneration Tribunal Act 1973, Income Tax Assessment Act 1997"],"plain_english_summary":"The Act creates an independent Inspector‑General of Taxation to oversee the ATO and Tax Practitioners Board, investigating administrative complaints, probing systemic problems, advising government, and publishing reports. It affects virtually all Australians who deal with tax authorities. The IGT can’t change tax liabilities but offers accountability for poor process or communication; complainants should first raise issues with the ATO/TPB and act within 12 months. Protections include confidentiality and whistleblower safeguards."}},"importantCases":[],"_links":{"self":"/api/acts/inspector-general-of-taxation-act-2003","history":"/api/acts/inspector-general-of-taxation-act-2003/history","analysis":"/api/acts/inspector-general-of-taxation-act-2003/analysis","conflicts":"/api/acts/inspector-general-of-taxation-act-2003/conflicts","importantCases":"/api/acts/inspector-general-of-taxation-act-2003/important-cases","documents":"/api/acts/inspector-general-of-taxation-act-2003/documents"}}