David Fawcett (Wakefield, Liberal Party) Share this | Link to this | Hansard source

My question is addressed to the Treasurer. Would the Treasurer update the House on what the government is doing to crack down on tax fraud and to defend the integrity of Australia’s tax system?

Peter Costello (Higgins, Liberal Party, Treasurer) Share this | Link to this | Hansard source

I thank the honourable member for his question. I can inform him that in 2004 the government set up Project Wickenby, a project funded with $300 million to investigate international tax evasion and tax fraud. This dedicated operation brings together the Australian Taxation Office, the Australian Securities and Investments Commission, the Australian Crime Commission, the DPP, the Australian Federal Police and AUSTRAC. Under the investigation to date, three people have been arrested and charged with conspiracy to defraud the Commonwealth and assets have been frozen in relation to persons of interest.

The international scams which are being investigated under Project Wickenby have the capacity to threaten the integrity of the Australian taxation system. Today I am announcing that the government will introduce legislation to enable the agencies involved in Project Wickenby to share information between themselves which will assist in bringing successful prosecutions. These prosecutions will be not just in the tax area but in other areas, including money laundering.

Separately but related to that I am announcing a larger project to review the laws that protect taxpayer secrecy and disclosure between various agencies of government. This project will be commenced with the release of a discussion paper looking at existing secrecy and disclosure provisions from around 30 tax acts and proposing to standardise them in a way which will clarify the operation of the provisions and provide increased certainty for taxpayers and tax officials. This is part of a program which is continuing to simplify the operation of Australia’s taxation laws.

In relation to Project Wickenby, I can inform the House that this government will adequately fund and see through that investigation into international tax evasion, which this government will not countenance and which, if it were left unchecked, would undermine the Australian taxation system.