Revenue Protection: Departure Prohibition Orders in Australia

Abstract

Departure Prohibition Orders empower the Commissioner of Taxation to restrict a person’s international travel in order to protect the recovery of unpaid tax liabilities. Once considered exceptional, their use has increased in response to rising levels of collectable tax debt. This article examines Part IVA of the Taxation Administration Act 1953 (Cth), analysing the requirements for issuing a Departure Prohibition Order, the scope of the Commissioner’s discretion, and the avenues for revocation and temporary departure. It considers how the regime balances the protection of revenue with the significant intrusion upon individual liberty and whether the current approach has struck an adequate balance. The article concludes that this balance is weighted in favour of revenue protection, a position supported by the asymmetry between the Commissioner’s ability to impose such restraints administratively, whereas regulators such as the Australian Securities and Investments Commission must seek orders of the Court to achieve a comparable result, notwithstanding that both regulators use measures of this nature to protect the public interest.