It is possible that the Australian Taxation Office could soon have powers to release people’s tax information in cases of money laundering, terrorism and large-scale avoidance. The Australian Federal Government intends to introduce legislation to allow the Taxation Office to release tax-related details in case the public interest exceeds personal privacy considerations.
The idea itself could be helpful and useful in many money laundering cases, however there are concerns related to the potential misuse of power and privacy breaches, especially by third parties that may obtain sb’s personal information.
Acting Treasurer Peter Dutton said that the changes were designed to help the $300 million Operation Wickenby investigation into tax evasion, as well as to target terrorists and organized crime. Operation Wickenby demonstrated that in case of a serious risk to revenue it is necessary to provide support to the Tax Office and other enforcement agencies in order to fight that threat. Information will also be shared with agencies such as the Australian Securities and Investments Commission.
The changes could apply also in individual cases of tax evasion, which will be looked at on a case-by-case basis.
The Government is expected to standardise tax secrecy and disclosure provisions of 22 acts into a single law. But it would not need some additional protections under the Tax Act and other laws.
The Law Institute of Victoria opposes the changes considering that such information should be revealed only with court approval. It also expresses concerns about the information potentially becoming known to third parties.