The draft operational statement specifically addresses Section 17B notices, focusing on the procedures and considerations for demanding information taxpayers and third parties.

The Commissioner’s power under section 17B Tax Administration Act is very extensive. It is designed to ensure that the Commissioner can effectively gather information for tax administration. The Commissioner can demand a wide range of information from taxpayers and third parties, including documents, records and other data relevant to tax matters. Before issuing a formal notice the Commissioner often requests information voluntarily which can make the process smoother and encourage co-operation.

The draft statement helpfully sets out the factors the Commissioner will consider before issuing a section 17B notice.

The draft statement also covers: 

• information that may be excluded from the demands, like legally privileged information and tax advice information;
• the Commissioner’s need to protect the security of information provided; and
• non-compliance with a section 17B notice

Once finalised the statement will replace OS 13/02.

CA ANZ recommends some aspects of the item be reviewed and clarified with additional references.