The Federal Government has today established a taskforce to determine whether any changes are needed to the bankruptcy and taxation laws to ensure that people are prevented from using bankruptcy as a means of avoiding their tax obligations.
The taskforce will be made up of officers of the Attorney-General’s Department, the Australian Taxation Office, the Insolvency Trustee Service Australia and the Treasury. The taskforce will liaise closely with the Commonwealth Director of Public Prosecutions and the Australian Federal Police.
This is to ensure that there is appropriate and coordinated action at the Commonwealth level against those who flout the taxation system.
The Government is also introducing procedures to ensure that Commonwealth Departments and agencies do not engage barristers who use bankruptcy as a means of avoiding tax.
The Government will advise representatives at tomorrow’s meeting of Commonwealth, State and Territory Attorneys-General in Adelaide that strong and concerted action by each jurisdiction is needed to ensure that there is no lasting damage done to the legal system and to the standing of the profession by barristers who abuse the bankruptcy process.
While the NSW Government has acted to require legal practitioners to notify their professional association of bankruptcy, a national approach is needed.
The Commonwealth will urge the States and Territories to develop nationally consistent options to ensure that legal practitioners who become bankrupt are required to report that fact to their professional association and that the association then applies a ‘fit and proper person’ test to the right to continue to practise.
Media contacts:
Catherine Fitzpatrick (Mr Williams) 0419 423 965
Paul Edwards (Sen. Kemp) (02) 6277 7360