THE legal rules for tax disputes will come under scrutiny at a public hearing in Canberra tomorrow.

Tax barrister, Mr John Hyde Page, will give evidence before the House Standing Committee of Tax and Revenue in support of his submission to the Committee’s Inquiry into Tax Disputes.

Mr Page has represented clients previously under investigation by Project Wickenby, a cross-agency task force which plays a role in the Government's fight against tax evasion, avoidance and crime.

In his submission, Mr Page stated that:

• objection decisions by the ATO are “often … little more than a ‘cut and paste’ of the audit decision”
• a body separate to the ATO should be responsible for making “fraud and evasion” findings, imposing large penalties, making large default assessments, and issuing garnishee orders and departure prohibition orders
• the Federal Court should have full powers to review a finding of fraud and evasion by the ATO.

A finding of fraud and evasion against a taxpayer has important consequences. The usual two or four year time limits on audits no longer apply and sometimes taxpayers need to provide documents about transactions going back as far as 10 years.

Committee Chair John Alexander MP said that, “The Committee looks forward to hearing about whether the legal rules for tax disputes could be made fairer for taxpayers, while still helping the ATO do its job. This especially applies for findings of fraud or evasion, which have been one of the key issues in the inquiry.”

The Committee will also hear from Mr Richard Wytkin, an accountant and tax agent in Perth.

Wednesday, 29 October 2014
Committee Room 2R1, Parliament House, Canberra
The hearing will be broadcast live at: www.aph.gov.au/live.

4.30 pm (approx.) Mr Richard Wytkin (teleconference) 
5 pm Mr John Hyde Page Submission 22
5.45 pm Adjournment 

For further information: contact the committee secretariat by telephone 02 6277 4821, e-mail This email address is being protected from spambots. You need JavaScript enabled to view it., or visit the committee website http://www.aph.gov.au/taxrev.

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VECCI chief executive Mark Stone said VECCI welcomes the release of Victorian Labor’s “Back to School” plan for education and skills.

"The policy contains a number of initiatives consistent with Taking Care of Business, VECCI’s 2014 state election agenda, which will help Victoria’s education and training system meet the skills needs of Victoria’s service industries, emerging high growth sectors and industries undergoing change," Mr Stone said.

"Establishing 10 new technical schools will give many school students a head-start in gaining the skills needed for employment and we welcome the focus these schools will have on local industries.

"Technical schools have a vital role to play in providing students with industry experience through school based traineeships and apprenticeships. This training must be capable of evolving as the nature of industry and occupational requirements change," he said.

"The $320 million TAFE Rescue Fund needs to support system restructuring that is responsive to industry, rather than training providers. Sustainability will depend on the extent to which the TAFE sector can meet the training requirements of traditional goods producing industries, service industries and emerging high growth sectors.

"We welcome the commitment to tighten VET regulation to ensure the quality of qualifications; a move that will engender confidence in the system among all stakeholders.

"Increased funding for schools, including independent schools, is positive, however infrastructure alone will not improve student outcomes. Curriculum reform, school leadership and improvements in teacher training and assessment are also required.

"Labor’s promised VET funding review is timely and highly relevant to informing the future direction of skills reform, which must have as its objective the realisation of a significant improvement in training quality and responsiveness."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential body for employers in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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DESPITE challenging trading conditions, business sentiment for the Australian economy improved by four percentage points during the September 2014 quarter, while the Victorian economic outlook remained relatively stable, according to a leading business survey released this week.

The latest VECCI - Bank of Melbourne survey of business trends and prospects has shed further light on business sentiment and the challenges it anticipates in the year ahead.

The state-wide survey of more than 400 businesses, across seven major industry sectors, found that trading conditions remain positive over the quarter with a number of sectors reporting an improvement in sales, with further growth forecast into December.

However, trends in profitability and employment showed little improvement over the quarter, largely due to continuing increases in wages and other labour costs.

The survey found regional respondents were more likely to have experienced increased business costs and weaker profits than their metropolitan counterparts.

Looking at the performance of individual industries, the survey found that service sector exports, in industries like finance, property and business services, were relatively healthy over the quarter.

This relatively strong performance in part reflects the influence of the falling Australian dollar and strong efforts by business to develop new products and markets in the competitive global marketplace.

“While business prospects in the lead up to Christmas are positive, the fact remains that many small businesses continue to experience tough trading conditions,” said VECCI Chief Executive Mark Stone.

"In the lead up to the state election, both major parties must commit to measures that reduce costs for business and spur employment.”

VECCI & Bank of Melbourne partnership 

VECCI is pleased to partner with Bank of Melbourne. The bank supports VECCI’s quarterly survey of business trends and prospects, Business Leaders event series and Women in Business event series. The partnership builds on both VECCI’s and the Bank of Melbourne’s mutual goals in supporting businesses in Victoria.

Background – About VECCI

The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers’ body in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

www.vecci.org.au

Background – About Bank of Melbourne

Bank of Melbourne is investing in Melbourne and regional Victoria. Since re-launching in July 2011, the bank has tripled its workforce, opened 93 branches and become even more involved in the local community. The bank partners with the organisations and events that matter to Victorians. As a full-service bank, its team of lenders, account executives and industry specialists are supporting Victorian businesses, both large and small.

www.bankofmelbourne.com.au

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VECCI Chief Executive Mark Stone has welcomed the Commonwealth Government’s announcement that it will introduce legislation to repeal nearly 1,000 unnecessary pieces of legislation and regulations that will save individuals, businesses and the not-for-profit sector over $2.1 billion in compliance costs. 

"Creating a one-stop shop for environmental approvals will have particular benefits for Victorian businesses as it will remove unnecessary duplication and make the approvals process for major projects simpler and quicker," Mr Stone said.

"VECCI is also pleased with the inclusion of a number of measures targeting small business, including establishing the Fair Work Ombudsman’s Small Business Helpline, amending the Franchising Code of Conduct and improving tax office communication with small business.

"Business recognises that well-designed regulation can provide benefits for business and the wider community by improving economic stability, providing operational certainty and increasing consumer confidence.

"However, because regulations affect all facets of business, including inputs, prices, and output, unnecessary, complex and poorly designed regulations also constrain the ability of business to provide the best product or service at the lowest cost," Mt Stone said.

"The priority given to red tape reform by the Commonwealth Government is welcomed by VECCI and needs to be echoed by all governments."

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The Victorian Employers' Chamber of Commerce and Industry (VECCI) is the most influential employers' organisation in Victoria, informing and servicing more than 15,000 members, customers and clients around the state.

vecci.org.au

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