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Taxation Laws Amendment Act 1984

Authoritative Version
Act No. 123 of 1984 as made
An Act to amend various laws relating to taxation, and for other purposes
Administered by: Treasury
Date of Assent 19 Oct 1984
Date of repeal 10 Dec 2015
Repealed by Amending Acts 1980 to 1989 Repeal Act 2015

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Taxation Laws Amendment Act 1984

No. 123 of 1984

TABLE OF PROVISIONS

PART I—PRELIMINARY

Section

1.             Short title

2.             Commencement

PART II—AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969

3.             Principal Act

4.             Interpretation

5.             Repeal of section 6

6.             Annual report

7.             Duty stamps

8.             When duty or tax payable

9.             Default assessments

10.           Repeal of section and substitution of section—

70.          Penalty for failure to furnish return, &c.

11.           Amendment of assessments

12.           Assessments in relation to deceased persons

13.           Pending appeal or reference not to affect payment of tax or duty

14.           Adjustments of duty or tax after appeal

15.           Repeal of section and substitution of section—

81.          Penalty for unpaid duty or tax

16.           Recovery of additional penalty

17.           Recovery of duty or tax from trustees of deceased persons

18.           Collection of duty or tax from person indebted to person liable to duty or tax

19.           Person in receipt, &c., of money from non-resident

20.           Evidence



TABLE OF PROVISIONS—continued

Section

21.           Insertion of section—

91a.        Refunds of duty or tax

22.           Further amendments relating to offences and formal amendments

23.           Application of amendments

PART III—AMENDMENTS OF THE BANK ACCOUNT DEBITS TAX ADMINISTRATION ACT 1982

24.           Principal Act

25.           Interpretation

26.           Repeal of section 5

27.           Annual report

28.           When tax payable

29.           Insertion of section—

11a.        Offences relating to certificates of exemption

30.           Refund of amounts incorrectly paid

31.           Refunds for tax paid on excluded debits

32.           Default assessments

33.           Repeal of section and substitution of section—

17.          Penalty for failure to furnish return, &c.

34.           Amendment of assessments

35.           Prescribed decisions

36.           Repeal of section 21

37.           Variation of prescribed decision

38.           Adjustment of assessment after appeal

39.           Penalty for unpaid tax

40.           Repeal of section 60

41.           Further amendments relating to offences

42.           Application of amendments

PART IV—AMENDMENTS OF THE CRIMES (TAXATION OFFENCES) ACT 1980

43.           Principal Act

44.           Interpretation

45.           Insertion of section—

3a.          Extension to external Territories and Australian installations

46.           Penalties

PART V—AMENDMENTS OF THE ESTATE DUTY ASSESSMENT ACT 1914

47.           Principal Act

48.           Repeal of section 4b

49.           Annual report

50.           Quick succession rebates

51.           Rebate of duty

52.           Commissioner may require further or other returns

53.           Amendment of assessments

54.           Notice of assessment

55.           Pending appeal or reference not to affect assessment

56.           Repeal of section and substitution of section—

28c.        Adjustment of duty after appeal

57.           Insertion of section—

28e.        Interpretation

58.           Date of payment of duty

59.           Repeal of section and substitution of section—

31.          Penalty for unpaid duty

60.           Duty debt due to Commonwealth

61.           Duty may be sued for

62.           Duty first charge on estate

63.           Apportionment of duty among beneficiaries

64.           Apportionment of duty

65.           Registration of duty as charge

66.           Duty—how payable


TABLE OF PROVISIONS—continued

Section

67.           Commissioner may apply for order to sell

68.           Application of proceeds

69.           Repeal of sections and substitution of section—

46.          Penalty for failure to furnish return, &c.

70.           Release from liability for duty in cases of hardship

71.           Repeal of section 49

72.           Further amendment relating to offences

73.           Application of amendments

PART VI—AMENDMENTS OF THE GIFT DUTY ASSESSMENT ACT 1941

74.           Principal Act

75.           Repeal of sections 6 and 8

76.           Annual report

77.           Amendment of assessments

78.           Notice of assessment

79.           Insertion of section—

24a.        Interpretation

80.           Liability for gift duty

81.           Repeal of section and substitution of section—

27.          Penalty for unpaid duty

82.           Duty may be sued for

83.           Registration of duty as charge

84.           No limitation of action

85.           Objections and appeals

86.           Pending appeal or reference not to affect assessment

87.           Repeal of section and substitution of section—

38.          Adjustment of duty after appeal

88.           Repeal of sections and substitution of section—

42.          Penalty for failure to furnish return, &c.

89.           Further amendments relating to offences

90.           Application of amendments

PART VII—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

91.           Principal Act

92.           Interpretation

93.           Repeal of sections 10 and 13

94.           Annual report

95.           Losses and outgoings

96.           Qualifying expenditure

97.           Payment of withholding tax

98.           Application of credits

99.           State credits

100.        Amendment of assessments

101.        Repeal of section and substitution of section—

172.        Refund of amounts overpaid

102.        Notice of assessment

103.        Repeal of section and substitution of section—

182.        Remuneration and allowances of members

104.        Interpretation

105.        Repeal of section 184b

106.        Powers of Board

107.        Pending appeal not to delay payment of tax

108.        Repeal of section and substitution of section—

202.        Adjustment of tax after appeal

109.        When tax payable

110.        Taxpayer leaving Australia

111.        Extension of time and payment by instalments

112.        Penalty for unpaid tax

113.        Tax a debt due to the Commonwealth

114.        Recovery of tax

115.        Substituted service


TABLE OF PROVISIONS—continued

Section

116.        Liquidators, &c.

117.        When tax not paid during lifetime

118.        Repeal of section 217

119.        Commissioner may collect tax from person owing money to taxpayer

120.        Assessment where no administration

121.        Interpretation

122.        Amount of instalment of tax

123.        Estimated income tax

124.        Notice of alteration of amount of instalment

125.        Interpretation

126.        Insertion of section—

221eaa.    Failure to make deductions from salary or wages

127.        Group employers

128.        Employers other than group employers

129.        Repeal of section and substitution of sections—

221n.     Remission of certain amounts

221na.   Reduction of late payment penalty where judgment debt carries interest

221nb.   Penalties to be alternative to prosecution for certain offences

130.        Employer not accounting for deductions

131.        Employer failing to issue group certificate or deliver tax stamps sheet

132.        Repeal of section 221u

133.        Interpretation

134.        Additional tax where income underestimated

135.        Interpretation

136.        Failure to make deductions from prescribed payments

137.        Failure to pay amounts deducted to Commissioner

138.        Failure to furnish deduction form, &c.

139.        Remission of certain amounts

140.        Insertion of sections—

221yhla.    Reduction of late payment penalty where judgment debt carries interest

221yhlb.      Penalties to be alternative to prosecution for certain offences

141.        Repeal of section 221yho

142.        Deductions to be forwarded to Commissioner, &c.

143.        Repeal of section 221yw

144.        Deductions to be forwarded to Commissioner, &c.

145.        Liability of person who fails to make deduction, &c.

146.        Insertion of sections—

221zda.    Reduction of late payment penalty where judgment debt carries interest

221zdb.    Penalties to be alternative to prosecution for certain offences

147.        Repeal of section 221zj

148.        Liability of person who fails to make deduction

149.        Liability of person who fails to remit deduction

150.        Insertion of sections—

221zqa.    Reduction of late payment penalty where judgment debt carries interest

221zqb. Penalties to be alternative to prosecution for certain offences

151.        Repeal of section 221zv

152.        Repeal of Part VII and substitution of Part—

PART VII—PENALTY TAX

222.        Penalty for failure to furnish returns

223.        Penalty for false or misleading statements

224.        Penalty tax where certain anti-avoidance provisions apply

225.        Penalty tax where Division 13 of Part III applies

226.        Penalty tax where Part IVa applies

227.        Assessment of additional tax

228.        Return to be incorporated in objection for certain purposes

153.        Cancellation or suspension of registration of tax agent

154.        Unregistered tax agents not to charge fees

155.        Repeal of section 251v

156.        Public officer of company

157.        Public officer of trust estate

158.        Agents and trustees


TABLE OF PROVISIONS—continued

Section

159.        Persons in receipt or control of money from non-resident

160.        Recovery of tax paid on behalf of another person

161.        Contribution from joint taxpayers

162.        Release of taxpayers from liability in cases of hardship

163.        Further amendments relating to offences

164.        Formal amendments

165.        Application of amendments

166.        Default imprisonment—transitional provisions

PART VIII—AMENDMENT OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT 1953

167.        Principal Act

168.        Collection of tax due to the United States of America

PART IX—AMENDMENT OF THE LOCAL GOVERNMENT (PERSONAL INCOME TAX SHARING) ACT 1976

169.        Principal Act

170.        Interpretation

PART X—AMENDMENTS OF THE MIGRATION ACT 1958

171.        Principal Act

172.        Interpretation

173.        Offences in relation to entering into or remaining in Australia

174.        Persons concerned in bringing non-citizens secretly into Australia or harbouring prohibited non-citizens

175.        Minister or authorized officer may require prohibited non-citizen to leave Australia

PART XI—AMENDMENT OF THE NATIONAL CRIME AUTHORITY ACT 1984

176.        Principal Act

177.        Schedule

PART XII—AMENDMENTS OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971

178.        Principal Act

179.        Repeal of sections 6 and 7

180.        Annual report

181.        Time for payment of tax

182.        Assessments

183.        Repeal of sections and substitution of sections—

24.          Reduction of tax upon amendment of assessment

25.          Refunds

25a.        Employer leaving Australia

184.        Time to pay—extensions and instalments

185.        Repeal of section and substitution of section—

27.          Penalty for unpaid tax

186.        Recovery of tax

187.        Substituted service

188.        Liquidator to give notice

189.        Agent for absentee principal in winding-up of business

190.        Where tax not paid during lifetime

191.        Repeal of section 33

192.        Where no administration of estate of deceased taxpayer

193.        Joint taxpayers

194.        Commissioner may collect tax from person owing money to employer

195.        Pending appeal not to delay payment of tax


TABLE OF PROVISIONS—continued

Section

196.        Repeal of Parts and substitution of Part—

PART VII—PENALTY TAX

42.          Penalty for failure to furnish return, &c.

197.        Public officer of company

198.        Agents and trustees

199.        Person in receipt or control of money for absentee

200.        Release of employers in cases of hardship

201.        Regulations

202.        Further amendments relating to offences

203.        Application of amendments

204.        Default imprisonment—transitional provisions

PART XIII—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 1) 1930

205.        Principal Act

206.        Repeal of sections 5 and 8

207.        Annual report

208.        Time for payment of tax

209.        Further tax

210.        Insertion of section—

25a.        Reduction of tax upon amendment of assessment

211.        Refunds of tax

212.        Taxpayer leaving Australia

213.        Time to pay—extensions and instalments

214.        Repeal of section and substitution of section—

29.          Penalty for unpaid tax

215.        Recovery of tax

216.        Substituted service

217.        Liquidator to give notice

218.        Agent for absentee principal in winding-up of business

219.        When tax not paid during lifetime

220.        Provision for payment of tax by executors or administrators

221.        Recovery of tax paid on behalf of another person

222.        Contributions from joint taxpayers

223.        Commissioner may collect tax from person owing money to taxpayer

224.        Interpretation

225.        Repeal of section 39b

226.        Pending appeal not to delay payment of tax

227.        Repeal of Parts and substitution of Part—

PART VIII—PENALTY TAX

45.          Penalty for failure to furnish return, &c.

46.          Penalty tax where certain anti-avoidance provisions apply

47.          Assessment of additional tax

48.          When additional tax due and payable

228.        Public officer of company

229.        Agents and trustees

230.        Person in receipt or control of money for non-resident

231.        Further amendments relating to offences

232.        Default imprisonment—transitional provisions

233.        Application of amendments

PART XIV—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 2) 1930

234.        Principal Act

235.        Time for payment of tax

236.        Further tax

237.        Refunds of tax

238.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

239.        Application of amendment


TABLE OF PROVISIONS—continued

Section

PART XV—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 3) 1930

240.        Principal Act

241.        Time for payment of tax

242.        Further tax

243.        Refunds of tax

244.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

245.        Application of amendment

PART XVI—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 4) 1930

246.        Principal Act

247.        Time for payment of tax

248.        Further tax

249.        Refunds of tax

250.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

251.        Application of amendment

PART XVII—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 5) 1930

252.        Principal Act

253.        Time for payment of tax

254.        Refunds of tax

255.        Refunds of tax on rejected goods

256.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

257.        Further amendment relating to offences

PART XVIII—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 6) 1930

258.        Principal Act

259.        Time for payment of tax

260.        Further tax

261.        Refunds of tax

262.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

263.        Application of amendment

PART XIX—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 7) 1930

264.        Principal Act

265.        Time for payment of tax

266.        Further tax

267.        Refunds of tax

268.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

269.        Application of amendment

PART XX—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 8) 1930

270.        Principal Act

271.        Time for payment of tax

272.        Further tax

273.        Refunds of tax

274.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

275.        Application of amendment


TABLE OF PROVISIONS—continued

Section

PART XXI—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 9) 1930

276.        Principal Act

277.        Time for payment of tax

278.        Further tax

279.        Refunds of tax

280.        Application of provisions of Sales Tax Assessment Act (No. 1) 1930

281.        Application of amendment

PART XXII—AMENDMENTS OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935

282.        Principal Act

283.        Insertion of section—

4.             General administration of Act

284.        Amendment relating to offences

PART XXIII—AMENDMENTS OF THE SALES TAX PROCEDURE ACT 1934

285.        Principal Act

286.        Interpretation

287.        Repeal of section and substitution of section—

4.             General administration of Act

288.        Repeal of section 8

289.        Further amendments relating to offences

290.        Application

PART XXIV—AMENDMENTS OF THE TAXATION ADMINISTRATION ACT 1953

291.        Principal Act

292.        Repeal of sections and substitution of sections—

2.             Interpretation

3.             Extension of Act to external Territories

293.        Insertion of Part—

PART Ia—ADMINISTRATION

3a.          General administration of Act

3b.          Annual report

3c.          Secrecy

294.        Tenure of Commissioner and Second Commissioners

295.        Repeal of sections and substitution of sections—

6.             Leave of absence

6a.          Resignation

6b.          Acting appointments

6c.          Suspension and removal from office of Commissioner or Second Commissioner

6d.          Powers of Second Commissioner

296.        Delegation

297.        Insertion of headings and new sections—

PART IIIPROSECUTIONS AND OFFENCES

Division 1—Preliminary

8a.          Interpretation


TABLE OF PROVISIONS—continued

Section

Division 2—Offences

Subdivision A—Failure to comply with taxation requirements

8b.          Interpretation

8c.          Failure to comply with requirements under taxation law

8d.          Failure to answer questions when attending before the Commissioner, &c.

8e.          Penalties for failure to comply with requirements under taxation law

8f.           Election to treat offence otherwise than as prescribed taxation offence

8g.          Order to comply with requirement

8h.          Penalty for failure to comply with order

Subdivision B—Offences relating to statements, records and certain other matters

8j.           Interpretation

8k.          False or misleading statements

8l.          Incorrectly keeping records, &c.

8m.         Penalties for offences against sub-sections 8k (1) and 8l (1)

8n.          Recklessly making false or misleading statements

8p.           Knowingly making false or misleading statements

8q.          Recklessly or knowingly incorrectly keeping records, &c.

8r.          Penalties for offences against sections 8n, 8p and 8q

8s.           Election to treat offence otherwise than as prescribed taxation offence

8t.          Incorrectly keeping records with intention of deceiving or misleading, &c.

8u.          Falsifying or concealing identity with intention of deceiving or misleading, &c.

8v.          Penalties for offences against sections 8t and 8u

8w.         Court may order payment of amount in addition to penalty

Subdivision C—Miscellaneous

8x.          Obstructing taxation officers

8y.          Liability of officers, &c., of corporations

8z.          Evidentiary certificate relating to previous convictions

Division 3—Prosecution of Taxation Offences

8za.        Prosecution of taxation offences

8zb.        Prosecution may be commenced at any time

8zc.        Place where offence committed

8zd.        Conduct by servants or agents of corporations

8ze.        Penalty taxes to be alternative to prosecution for certain offences

8zf.        Penalty for corporations

8zg.        Enforcement of orders for payment

8zh.        Penalties not to relieve from tax

Division 4—Prescribed Taxation Offences

8zj.         Prosecution of prescribed taxation offences

8zk.        Protection of witnesses

8zl.        Averment

8zm.       Evidence of authority to institute proceedings

8zn.        Costs

298.        Heading to Part III

299.        Interpretation

300.        Service of summons by post

301.        Notice of conviction in absentia

302.        Limitation of action to enforce payment of fine

303.        Application of other laws

304.        Interpretation

305.        Applications for issue of certificates

306.        Issue of certificates

307.        Grounds on which issue of certificates may be refused

308.        Repeal of sections 14e and 14f

309.        Repeal of section 14ha


TABLE OF PROVISIONS—continued

Section

310.        Repeal of section 14k

311.        Repeal of section 14o

312.        Insertion of Part—

PART IVa—DEPARTURE FROM AUSTRALIA OF CERTAIN TAX DEBTORS

Division 1—Interpretation

14q.        Interpretation

Division 2—Prohibition and Authorization of Departure of Certain Tax Debtors

14r.        Departure from Australia of certain tax debtors prohibited

14s.        Departure prohibition orders

14t.        Revocation and variation of departure prohibition orders

14u.        Departure authorization certificates

Division 3—Appeals from and Review of Decisions of the Commissioner

14v.        Appeals to courts against making of departure prohibition orders

14w.       Jurisdiction of courts

14x.        Orders of court on appeal

14y.        Applications for review of certain decisions

Division 4—Enforcement

14z.        Powers of authorized officers

14za.     Certain tax debtors to produce authority to depart, &c.

313.        Repeal of section 15 and substitution of section—

15.          Appearance by Commissioner, &c.

314.        Insertion of section—

16.          Payments out of Consolidated Revenue Fund

315.        Powers of taxation officers in relation to references to currency, &c.

316.        Further amendment relating to offences

317.        Application of amendments

PART XXV—AMENDMENTS OF THE TAXATION (INTEREST ON OVERPAYMENTS) ACT 1983

318.        Principal Act

319.        Interpretation

320.        Repeal of sections 5 and 6

321.        Annual report

322.        Entitlement to interest

323.        Amount of interest

324.        Insertion of section—

10a.        Interest not to be paid for certain periods

325.        Insertion of section—

11a.        Adjustment where amount to be paid by, or refunded to, person does not exceed 49 cents

326.        Certain agreements to remit additional tax, &c.

327.        Repeal of section 14

PART XXVI—AMENDMENTS OF THE TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982

328.        Principal Act

329.        Application of Assessment Act

330.        Penalty for late payment of tax

331.        Request to eliminate undistributed amount

332.        Notification of company tax liability

333.        Further amendment relating to offences


TABLE OF PROVISIONS—continued

Section

PART XXVII—AMENDMENTS OF THE TOBACCO CHARGES ASSESSMENT ACT 1955

334.        Principal Act

335.        Repeal of sections 8 and 9

336.        Annual report

337.        Due date of payment

338.        Penalty for unpaid charge

339.        Assessment of charge

340.        Commissioner may sue for charge

341.        Insertion of section—

21a.        Reduction of charge upon amendment of assessment

342.        Refunds of charge

343.        Persons leaving Australia

344.        Liquidators to give notice

345.        Payment of charge by legal personal representative

346.        Repeal of Part VI and substitution of Part—

PART VI—PENALTY CHARGE

29.          Penalty for failure to furnish return, &c.

347.        Public officer of company

348.        Further amendments relating to offences

349.        Application of amendments

PART XXVIII—AMENDMENTS OF THE WOOL TAX (ADMINISTRATION) ACT 1964

350.        Principal Act

351.        Repeal of sections 6 and 7

352.        Annual report

353.        Certificate by Commissioner as to payment of, or exemption from, tax or previous tax

354.        Insertion of new section—

27a.        Offences relating to certificates

355.        Due date

356.        Time to pay—extensions and instalments

357.        Repeal of section and substitution of section—

38.          Penalty for unpaid tax

358.        Assessments

359.        Default assessments

360.        Notice of assessments

361.        Date on which tax payable

362.        Commissioner may sue for tax

363.        Insertion of new section—

44a.        Reduction of tax upon amendment of assessment

364.        Refunds of tax

365.        Substituted service

366.        Liquidators to give notice

367.        Agent for absentee principal in winding-up of business

368.        When tax not paid during lifetime

369.        Provision for payment of tax by trustees of deceased person

370.        Where no administration of deceased person’s estate

371.        Recovery of tax paid on behalf of another person

372.        Contributions from persons jointly liable

373.        Commissioner may collect tax from person owing money to person liable to tax

374.        Interpretation

375.        Repeal of section 55b

376.        Pending reference or appeal not to delay payment of tax, &c.

377.        Repeal of Parts and substitution of Part—

PART X—PENALTY TAX

61.          Penalty for failure to furnish return, &c.

378.        Public officer of company


TABLE OF PROVISIONS—continued

Section

379.        Agents or trustees

380.        Person in receipt or control of money for non-resident

381.        Further amendments relating to offences

382.        Application of amendments

383.        Default imprisonment—transitional provisions

PART XXIX—MISCELLANEOUS

384.        Deferment for 2 months of increased penalty for unpaid tax, &c.

385.        Agreement to remit penalty for unpaid tax, &c.

SCHEDULE 1

FURTHER AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969 RELATING TO OFFENCES

SCHEDULE 2

FORMAL AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969

SCHEDULE 3

FURTHER AMENDMENTS OF THE BANK ACCOUNT DEBITS TAX ADMINISTRATION ACT 1982 RELATING TO OFFENCES

SCHEDULE 4

FURTHER AMENDMENT OF THE ESTATE DUTY ASSESSMENT ACT 1914 RELATING TO OFFENCES

SCHEDULE 5

FURTHER AMENDMENTS OF THE GIFT DUTY ASSESSMENT ACT 1941 RELATING TO OFFENCES

SCHEDULE 6

FURTHER AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936 RELATING TO OFFENCES

SCHEDULE 7

FORMAL AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

SCHEDULE 8

FURTHER AMENDMENTS OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971 RELATING TO OFFENCES

SCHEDULE 9

FURTHER AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 1) 1930 RELATING TO OFFENCES

SCHEDULE 10

FURTHER AMENDMENT OF THE SALES TAX ASSESSMENT ACT (No. 5) 1930 RELATING TO OFFENCES



TABLE OF PROVISIONScontinued

SCHEDULE 11

FURTHER AMENDMENT OF THE SALES TAX (EXEMPTIONS AND CLASSIFICATIONS) ACT 1935 RELATING TO OFFENCES

SCHEDULE 12

FURTHER AMENDMENTS OF THE SALES TAX PROCEDURE ACT 1934 RELATING TO OFFENCES

SCHEDULE 13

FURTHER AMENDMENT OF THE TAXATION ADMINISTRATION ACT 1953 RELATING TO OFFENCES

SCHEDULE 14

FURTHER AMENDMENT OF THE TAXATION (UNPAID COMPANY TAX) ASSESSMENT ACT 1982 RELATING TO OFFENCES

SCHEDULE 15

FURTHER AMENDMENTS OF THE TOBACCO CHARGES ASSESSMENT ACT 1955 RELATING TO OFFENCES

SCHEDULE 16

FURTHER AMENDMENTS OF THE WOOL TAX (ADMINISTRATION) ACT 1964 RELATING TO OFFENCES



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Taxation Laws Amendment Act 1984

No. 123 of 1984

 

An Act to amend various laws relating to taxation, and for other purposes

[Assented to 19 October 1984]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Taxation Laws Amendment Act 1984.

Commencement

2. (1) Sections 1 and 2 shall come into operation on the day on which this Act receives the Royal Assent.

(2) Sub-section 319 (1) shall be deemed to have come into operation immediately after the commencement of the Taxation (Interest on Overpayments) Act 1983.

(3) The remaining provisions of this Act shall come into operation on the fifty-sixth day after the day on which this Act receives the Royal Assent.


 

PART II—AMENDMENTS OF THE AUSTRALIAN CAPITAL TERRITORY TAXATION (ADMINISTRATION) ACT 1969

Principal Act

3. The Australian Capital Territory Taxation (Administration) Act 19691 is in this Part referred to as the Principal Act.

Interpretation

4. Section 4 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “assessment” and substituting the following definition:

“‘assessment’ means—

(a) an assessment under this Act by the Commissioner of the amount of duty or tax payable under this Act (including an assessment of tax in respect of a return); or

(b) an assessment of the Commissioner under this Act of an additional amount payable under section 70,

and includes an amended assessment;”; and

(b) by omitting sub-section (5).

Repeal of section 6

5. Section 6 of the Principal Act is repealed.

Annual report

6. Section 6a of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Duty stamps

7. Section 8 of the Principal Act is amended—

(a) by omitting from sub-section (1) “or of additional amounts payable by way of penalty under section 70 of this Act”; and

(b) by omitting from sub-section (1) “, for denoting the payment of those additional amounts”.

When duty or tax payable

8. Section 9 of the Principal Act is amended—

(a) by omitting from paragraph (1) (b) “and” (last occurring);


 

(b) by adding at the end of sub-section (1) the following word and paragraph:

“; and (d) a penalty is due and payable upon the date specified in the notice of assessment of the penalty as the date upon which the penalty is due and payable”;

(c) by omitting from sub-sections (2), (3) and (4) “or tax” (first occurring) and substituting “, tax or penalty”;

(d) by omitting from sub-sections (2), (3) and (4) “or tax” (last occurring) and substituting “, tax or penalty, as the case may be,”; and

(e) by adding at the end thereof the following sub-section:

“(5) In this section, ‘penalty’ means an additional amount payable under section 70.”.

Default assessments

9. Section 68 of the Principal Act is amended—

(a) by omitting paragraphs (1) (a) and (b);

(b) by re-lettering paragraph (1) (c) as paragraph (1) (a);

(c) by omitting paragraphs (1) (d) and (e) and substituting the following word and paragraph:

“or (b) the Commissioner is of the opinion that a person is liable to pay duty or tax (whether or not any return or information has been furnished or any instrument has been lodged for assessment),”;

(d) by omitting from sub-section (1) “paragraph (c)” and substituting “paragraph (a)”; and

(e) by omitting from sub-sections (2) and (3) “paragraph (1) (c)” and substituting “paragraph (1) (a)”.

10. Section 70 of the Principal Act is repealed and the following section is substituted:

Penalty for failure to furnish return, &c.

“70. (1) Where a person refuses or fails, when and as required under or pursuant to this Act or the regulations to do so—

(a) to furnish a return, or any information, relating to a matter or thing;

(b) to lodge an instrument for assessment; or

(c) to cause an instrument to be duly stamped,

the person is liable to pay, by way of penalty, an additional amount equal to double the amount of duty or tax payable by the person in respect of the matter, thing or instrument, as the case may be.

“(2) Where—

(a) a person—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the


 

operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and

(b) the duty or tax properly payable by the person exceeds the duty or tax that would have been payable by the person if it were assessed or determined on the basis that the statement were not false or misleading, as the case may be,

the person is liable to pay, by way of penalty, an additional amount equal to double the amount of the excess.

“(3) Where, but for this sub-section, an additional amount, being an amount less than $20, is payable by a person under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional amount shall be taken to be $20.

“(4) The Commissioner shall make an assessment of the additional amount payable by a person under this section, and shall, as soon as practicable after the assessment is made, cause notice in writing of the assessment to be given to the person.

“(5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of a person under sub-section (4) from being incorporated in notice of any other assessment made in respect of the person under this Act.

“(6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of an additional amount payable by a person under this section, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (4) of the additional amount.

“(7) A reference in sub-section (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in an instrument lodged for assessment under or pursuant to this Act or the regulations;

(c) made in answer to a question asked of a person under or pursuant to this Act or the regulations;


 

(d) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(e) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to paragraph 61 (2) (c).

“(8) A reference in sub-section (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

“(9) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.”.

Amendment of assessments

11. Section 71 of the Principal Act is amended—

(a) by omitting sub-section (3) and substituting the following sub-section:

“(3) Where, by reason of an amendment of an assessment, a person’s liability to duty or tax is reduced, the amount by which the duty or tax is so reduced shall be taken, for the purposes of section 81, never to have been payable.”; and

(b) by adding at the end thereof the following sub-sections:

“(5) In this section, ‘duty or tax’ includes an additional amount payable under section 70.

“(6) In sub-section (4), unless the contrary intention appears, ‘duty or tax’ also includes an additional amount payable under section 81.”.

Assessments in relation to deceased persons

12. Section 72 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty or tax’ includes an additional amount payable under section 70.”.


 

Pending appeal or reference not to affect payment of tax or duty

13. Section 77 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty or tax’ includes an additional amount payable under section 70 or 81.”.

Adjustments of duty or tax after appeal

14. Section 78 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-sections:

“(2) If an assessment is varied on a reference or appeal, an amount of duty or tax not paid or underpaid is recoverable from the person liable under the assessment as varied to pay the duty or tax.

“(3) If a prescribed decision is set aside on a reference or appeal, the Commissioner shall cause notice in writing of that fact to be given to the person who requested review of the prescribed decision.

“(4) If, by reason of—

(a) the variation of an assessment on a reference or appeal; or

(b) the setting aside of a prescribed decision on a reference or appeal,

a person’s liability to duty or tax is reduced, the amount by which the duty or tax is so reduced shall be taken, for the purposes of section 81, never to have been payable.

“(5) Unless the contrary intention appears, a reference in this section to duty or tax includes a reference to an additional amount payable under section 70 or 81.”.

15. Section 81 of the Principal Act is repealed and the following section is substituted:

Penalty for unpaid duty or tax

“81. (1) If any duty or tax remains unpaid after the time when it became due and payable or would, but for sub-section 9 (2) or (3), have become due and payable, an additional amount is due and payable by way of penalty by the person liable to pay the duty or tax at the rate of 20% per annum on the amount unpaid, computed from that time or, where the Commissioner has, under sub-section 9 (2), extended the time for payment of the duty or tax for a period or has, under sub-section 9 (3), permitted the payment of the duty or tax to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the duty or tax was originally due and payable.


 

“(2) Where an additional amount is payable by a person under this section in relation to an amount of duty or tax and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the duty or tax were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the duty or tax were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional amount or part of the additional amount; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional amount or part of the additional amount,

the Commissioner may remit the additional amount or part of the additional amount.

“(3) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of duty or tax; or

(b) an amount that includes an amount of duty or tax,

then—

(c) the duty or tax shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional amount that would, but for this paragraph, be payable under this section in relation to the duty or tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the duty or tax bears to the amount of the judgment debt.

“(4) A reference in this section to duty or tax includes a reference to an additional amount payable under section 70.”.

Recovery of additional penalty

16. Section 82 of the Principal Act is amended by omitting sub-section (2).


 

Recovery of duty or tax from trustees of deceased persons

17. Section 83 of the Principal Act is amended—

(a) by omitting from sub-section (2) “this Act” and substituting “section 70 or 81”; and

(b) by adding at the end thereof the following sub-section:

“(3) In sub-section (1), ‘duty or tax’ includes an additional amount payable under section 70 or 81.”.

Collection of duty or tax from person indebted to person liable to duty or tax

18. Section 84 of the Principal Act is amended—

(a) by inserting after sub-section (7) the following sub-sections:

“(7a) Where—

(a) money has been paid by a person to a building society in respect of the issue of shares in the capital of the society (not being shares listed for quotation on a Stock Exchange); and

(b) the money has not been repaid,

the money shall, for the purposes of this section, be taken—

(c) in a case where the money is repayable on demand—to be due by the building society to the person; or

(d) in any other case—to be money that may become due by the building society to the person.

“(7b) Where, but for this sub-section, money is not due, or repayable on demand, to a person unless a condition is fulfilled, the money shall be taken, for the purposes of this section, to be due or repayable on demand, as the case may be, to the person notwithstanding that the condition has not been fulfilled.”;

(b) by inserting before the definition of “debt” in sub-section (8) the following definition:

“‘building society’ means a society registered or incorporated as a building society, co-operative housing society or other similar society under the law in force in a State;”; and

(c) by omitting from sub-section (8) the definition of “duty or tax” and substituting the following definition:

“‘duty or tax’ includes—

(a) an additional amount payable under section 70 or 81;

(b) a judgment debt or costs in respect of—

(i) duty or tax; or

(ii) an additional amount payable under section 70 or 81;

(c) any fine or costs imposed by a court in respect of—

(i) an offence against this Act or the regulations; or

(ii) any other taxation offence within the meaning of Part III of the Taxation Administration Act


 

1953 that relates to this Act or the regulations; and

(d) any amount ordered by a court, upon the conviction of a person for an offence of a kind referred to in paragraph (c), to be paid by the person to the Commissioner;”; and

(d) by omitting “, the Commonwealth, a State,” (first occurring) from the definition of “person indebted” in sub-section (8) and substituting “, a company, a partnership, the Commonwealth or a State”.

Person in receipt, &c., of money for non-resident

19. Section 85 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(4) In this section, ‘duty or tax’ includes an additional amount payable under section 70 or 81.”.

Evidence

20. Section 86 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) A reference in this section to duty or tax includes a reference to an additional amount payable under section 70 or 81.”.

21. After section 91 of the Principal Act the following section is inserted:

Refunds of duty or tax

“91a. (1) Subject to section 92, where the Commissioner finds in any case that duty or tax has been overpaid by a person, the Commissioner shall—

(a) refund the amount of any duty or tax overpaid; or

(b) apply the amount of any duty or tax overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(2) In sub-section (1), ‘duty or tax’ includes an additional amount payable under section 70 or 81.”.

Further amendments relating to offences and formal amendments

22. (1) The Principal Act is amended as set out in Schedule 1.

(2) The Principal Act is amended as set out in Schedule 2.

Application of amendments

23. (1) In this section, “amended Act” means the Principal Act as amended by this Act.


 

(2) Notwithstanding the repeal of sections 10, 62, 63, 65, 70 and 81 and Part VII of the Principal Act effected by this Act—

(a) sub-sections 10 (3), (4) and (5) of the Principal Act continue to apply, after the commencement of this section, in relation to a person convicted, whether before or after that commencement, of an offence against sub-section 10 (1) or (2) of the Principal Act;

(b) sub-sections 62 (3), (4) and (5) of the Principal Act continue to apply, after that commencement, in relation to a person convicted, whether before or after that commencement, of an offence against sub-section 62 (1) of the Principal Act;

(c) sub-sections 62 (6) and 63 (3), section 65 and Part VII of the Principal Act continue to apply, after that commencement, in relation to an offence against the Principal Act committed before that commencement; and

(d) sub-sections 70 (6) and 81 (2) of the Principal Act continue to apply, after that commencement, in relation to a liability for an additional amount that accrued before that commencement,

as if that repeal had not been effected.

(3) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to duty or tax included a reference to an additional amount, the amendments made by this Act shall be disregarded.

(4) Sub-section 81 (3) of the amended Act applies in relation to judgments given or entered after the commencement of this section.

PART III—AMENDMENTS OF THE BANK ACCOUNT DEBITS TAX ADMINISTRATION ACT 1982

Principal Act

24. The Bank Account Debits Tax Administration Act 19822 is in this Part referred to as the Principal Act.

Interpretation

25. Section 3 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “assessment” and substituting the following definition:

“‘assessment’ means—

(a) the ascertainment of tax payable under this Act in respect of a taxable debit or taxable debits, or an eligible debit or eligible debits, as the case may be; or

(b) the ascertainment of additional tax payable under section 17;”; and

(b) by adding at the end thereof the following sub-section:


 

“(8) A reference in this Act to a liability of a person to the Commonwealth is a reference to a liability of a person to the Commonwealth arising under, or by virtue of, an Act of which the Commissioner has the general administration.”.

Repeal of section 5

26. Section 5 of the Principal Act is repealed.

Annual report

27. Section 6 of the Principal Act is amended—

(a) by omitting from sub-section (1) “during the year that ended on that 30 June”;

(b) by omitting sub-section (3); and

(c) by adding at the end thereof the following sub-section:

“(5) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

When tax payable

28. Section 9 of the Principal Act is amended—

(a) by omitting from paragraph (b) “by the person liable to pay the tax”;

(b) by omitting from paragraph (b) all the words after “days” and substituting the following word and sub-paragraphs:

“after—

(i) in a case in which notice of that assessment was required to be served on one person—the day on which the notice was served on the person;

(ii) in a case in which notice of that assessment was required to be served on 2 or more persons and notice of that assessment was served on those persons on the same day—the day on which the notice was served on the persons; or

(iii) in a case in which notice of that assessment was required to be served on 2 or more persons and notice of that assessment was served on those persons on different days—the earliest of those days”; and

(c) by adding at the end thereof the following sub-section:

“(2) Additional tax under section 17 is due and payable on the date specified in the notice of assessment of the additional tax as the date on which the additional tax is due and payable.”.

29. After section 11 of the Principal Act the following section is inserted in Part III:


 

Offences relating to certificates of exemption

“11a. (1) A person shall not—

(a) forge a certificate or utter a certificate knowing it to be forged;

(b) without lawful authority, alter or sign a certificate;

(c) deliver a document (not being a certificate) that purports to be a certificate; or

(d) knowingly represent that a certificate is in respect of an account other than the account in respect of which the certificate was issued.

Penalty: $10,000 or imprisonment for 2 years, or both.

“(2) In sub-section (1), ‘certificate’ means a certificate of exemption.”.

Refund of amounts incorrectly paid

30. Section 13 of the Principal Act is amended—

(a) by inserting in sub-section (1) “by a person” after “made”;

(b) by omitting from sub-section (1) all the words after “the Commissioner” (last occurring) and substituting the following word and paragraphs:

“shall—

(a) refund the amount to the person; or

(b) apply the amount against any liability of the person to the Commonwealth and refund any part of the amount not so applied”;

(c) by inserting in sub-section (5) “by a person” after “made”; and

(d) by omitting paragraphs (5) (a) and (b) and substituting the following paragraphs:

“(a) if the Commissioner is satisfied that the amount was not payable, the Commissioner shall—

(i) refund the amount to the person; or

(ii) apply the amount against any liability of the person to the Commonwealth and refund any part of the amount not so applied;

(b) if the Commissioner is satisfied that part only of the amount was not payable, the Commissioner shall—

(i) refund that part of the amount to the person;

(ii) apply that part of the amount against any liability of the person to the Commonwealth and refund any part of that part of the amount not so applied; or”.

Refunds for tax paid on excluded debits

31. Section 14 of the Principal Act is amended—

(a) by inserting in sub-section (1) “by a person” after “made”; and


 

(b) by omitting from sub-section (1) all the words after “the Commissioner” (last occurring) and substituting the following word and paragraphs:

“shall—

(a) pay an amount equal to the amount of that tax to the person; or

(b) apply an amount equal to the amount of that tax against any liability of the person to the Commonwealth and refund any part of that amount not so applied”.

Default assessments

32. Section 16 of the Principal Act is amended—

(a) by omitting sub-sections (1) and (2) and substituting the following sub-sections:

“(1) Where the Commissioner is of the opinion that 2 or more persons are jointly and severally liable to pay tax on a taxable debit or taxable debits made to a taxable account (whether or not any return has been furnished), the Commissioner may make an assessment of the amount of the tax.

“(2) Where the Commissioner is of the opinion that a person is liable, or 2 or more persons are jointly and severally liable, to pay tax on an eligible debit or eligible debits made to an account other than a taxable account (whether or not any return has been furnished), the Commissioner may make an assessment of the amount of the tax.”; and

(b) by omitting paragraphs (3) (a) and (b) and substituting the following paragraphs:

“(a) in a case to which sub-section (1) applies—the bank with which the account is kept; or

(b) in a case to which sub-section (2) applies—the person liable, or the persons jointly and severally liable, to pay the tax”.

33. Section 17 of the Principal Act is repealed and the following section is substituted:

Penalty for failure to furnish return, &c.

“17. (1) Where a person refuses or fails, when and as required under or pursuant to this Act or the regulations to do so—

(a) to furnish a return, or any information, relating to a taxable debit or taxable debits made to a taxable account or an eligible debit or eligible debits made to an account other than a taxable account; or

(b) to notify the Commissioner of an eligible debit made to an exempt account,

the person is liable to pay, by way of penalty, additional tax equal to double the amount of tax payable by the person in respect of the taxable debit or taxable debits or the eligible debit or eligible debits, as the case may be.


 

“(2) Where—

(a) a person—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and

(b) the tax properly payable by the person exceeds the tax that would have been payable by the person if it were assessed or determined on the basis that the statement were not false or misleading, as the case may be,

the person is liable to pay, by way of penalty, additional tax equal to double the amount of the excess.

“(3) Where, but for this sub-section, an amount of additional tax, being an amount less than $20, is payable by a person under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional tax shall be taken to be $20.

“(4) The Commissioner shall make an assessment of the additional tax payable by a person under this section and shall, as soon as practicable after the assessment is made, cause notice in writing of the assessment to be served, by post or otherwise, on the person.

“(5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of a person under sub-section (4) from being incorporated in notice of any other assessment made in respect of the person under this Act.

“(6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional tax payable by a person under this section, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (4) of the additional tax.

“(7) A reference in sub-section (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;


 

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to sub-paragraph 59 (1) (b) (ii).

“(8) A reference in sub-section (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

“(9) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.”.

Amendment of assessments

34. Section 18 of the Principal Act is amended—

(a) by inserting after sub-section (2) the following sub-section:

“(2a) Where, by reason of an amendment of an assessment, a person’s liability to tax is reduced—

(a) the amount by which the tax is so reduced shall be taken, for the purposes of section 36, never to have been payable; and

(b) subject to sub-section (3), the Commissioner shall—

(i) refund the amount of any tax overpaid; or

(ii) apply the amount of any tax overpaid against any liability of the person to the Commonwealth and refund any part of the amount that is not so applied.”;

(b) by omitting from sub-section (3) “and” (first occurring) and substituting “, the amount of the tax overpaid shall not be refunded to the bank or applied against a liability of the bank to the Commonwealth unless”;

(c) by omitting from sub-section (3) “, the amount of tax overpaid shall be refunded to the bank”;

(d) by omitting sub-section (4); and


 

(e) by omitting sub-section (7) and substituting the following sub-section:

“(7) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under section 17 or 36.”.

Prescribed decisions

35. Section 20 of the Principal Act is amended by omitting from paragraph (b) of the definition of “Supreme Court” all the words after “Northern Territory”.

Repeal of section 21

36. Section 21 of the Principal Act is repealed.

Variation of prescribed decision

37. Section 31 of the Principal Act is amended—

(a) by inserting after paragraph (a) the following paragraph:

“(aa) in a case where the variation of the prescribed decision results in a reduction of tax—the amount by which the tax is so reduced shall be taken, for the purposes of section 36, never to have been payable;”;

(b) by omitting paragraph (c) and substituting the following paragraph:

“(c) the Commissioner shall—

(i) refund the amount of any tax overpaid as a result of the variation of the prescribed decision; or

(ii) apply the amount of any tax overpaid as a result of the variation of the prescribed decision against any liability of the person to the Commonwealth and refund any part of the amount that is not so applied”; and

(c) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), unless the contrary intention appears, ‘tax’ includes additional tax under section 17 or 36.”.

Adjustment of assessment after appeal

38. Section 32 of the Principal Act is amended—

(a) by inserting after paragraph (a) the following paragraph:

“(aa) in a case where the variation of the assessment results in a reduction of tax—the amount by which the tax is so reduced shall be taken, for the purposes of section 36, never to have been payable;”;

(b) by omitting paragraph (c) and substituting the following paragraph:

“(c) the Commissioner shall—

(i) refund the amount of any tax overpaid as a result of the variation of the assessment; or

(ii) apply the amount of any tax overpaid as a result of the variation of the assessment against any liability of the person to the Commonwealth and refund any part of the amount that is not so applied”; and

(c) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), unless the contrary intention appears, tax includes additional tax under section 17 or 36.”.


 

Penalty for unpaid tax

39. Section 36 of the Principal Act is amended—

(a) by omitting from sub-section (1) “assessed under this Act”;

(b) by inserting in sub-section (1) “by the person liable, or the persons jointly and severally liable, to pay the tax” after “by way of penalty”;

(c) by inserting after sub-section (2) the following sub-sections:

“(2a) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of tax; or

(b) an amount that includes an amount of tax,

then—

(c) the tax shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional tax that would, but for this paragraph, be payable under this section in relation to the tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the tax bears to the amount of the judgment debt.”; and

(d) by inserting in sub-section (4) “unless the contrary intention appears,” after “section,”.

Repeal of section 60

40. Section 60 of the Principal Act is repealed.

Further amendments relating to offences

41. The Principal Act is amended as set out in Schedule 3.

Application of amendments

42. (1) In this section, “amended Act” means the Principal Act as amended by this Act.

(2) An assessment made under section 16 of the Principal Act before the commencement of this section has effect, after that commencement, as if it were an assessment made under section 16 of the amended Act.

(3) Notwithstanding the repeal of section 17 and Parts VII and VIII of the Principal Act effected by this Act—

(a) sub-section 17 (5) of the Principal Act continues to apply, after the commencement of this section, in relation to a liability for additional tax that accrued before that commencement;

(b) sub-section 38 (3), sections 42 and 43 and Part VIII of the Principal Act continue to apply, after that commencement, in relation to offences against the Principal Act committed before that commencement; and


 

(c) section 39 of the Principal Act continues to apply, after that commencement, in relation to a person convicted, whether before or after that commencement, of an offence against section 12, 38 or 56 of the Principal Act,

as if that repeal had not been effected.

(4) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to tax included a reference to additional tax, the amendments made by this Act shall be disregarded.

(5) Sub-section 36 (2a) of the amended Act applies in relation to judgments given or entered after the commencement of this section.

PART IV—AMENDMENTS OF THE CRIMES (TAXATION OFFENCES) ACT 1980

Principal Act

43. The Crimes (Taxation Offences) Act 19803 is in this Part referred to as the Principal Act.

Interpretation

44. Section 3 of the Principal Act is amended—

(a) by inserting before the definition of “Commissioner” in sub-section (1) the following definition:

“‘Australian installation’ means an installation within the meaning of the Sales Tax Act (No. 1) 1930 that is deemed by virtue of section 2a of that Act to be part of Australia;”;

(b) by omitting “, 221ydb or 226” from paragraph (b) of the definition of “income tax” in sub-section (1) and substituting “or 221ydb or Part VII”;

(c) by omitting “sub-section 221f (5) or (10)” from paragraph (d) of the definition of “income tax” in sub-section (1) and substituting “sub-section 221eaa (1) or 221f (5), sub-paragraph 221f (12) (b) (ii) or paragraph 221g (4a) (d)”; and

(d) by omitting paragraph (g) of the definition of “income tax” in sub-section (1) and substituting the following paragraph:

“(g) any amount payable to the Commissioner under sub-section 221yhd (1) or (1d) or 221yhh (1), sub-paragraph 221yhj (1) (b) (ii), sub-section 221yn (1) or (4), 221yq (1), 221zc (1) or (4), 221zd (1), 221zn (1) or 221zo (1) or section 221zp of the Income Tax Assessment Act;”.

45. After section 3 of the Principal Act the following section is inserted:

Extension to external Territories and Australian installations

3a. This Act extends to every external Territory and to Australian installations.”.


 

Penalties

46. Section 9 of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(5) Notwithstanding that a consent in accordance with sub-section (4) has not been given in relation to an offence against this Act—

(a) a person may be charged with the offence;

(b) a person may be arrested for the offence, and a warrant for such an arrest may be issued and executed; and

(c) a person so charged may be remanded in custody or on bail,

but no further step in proceedings for the offence shall be taken until such a consent has been given.

“(6) Nothing in sub-section (5) prevents the discharging of the accused if proceedings are not continued within a reasonable time.”.

PART V—AMENDMENTS OF THE ESTATE DUTY ASSESSMENT ACT 1914

Principal Act

47. The Estate Duty Assessment Act 19144 is in this Part referred to as the Principal Act.

Repeal of section 4b

48. Section 4b of the Principal Act is repealed.

Annual report

49. Section 7 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Quick succession rebates

50. Section 8a of the Principal Act is amended by omitting from paragraphs (5) (c) and (d) “section 47a” and substituting “46”.

Rebate of duty

51. Section 9e of the Principal Act is amended by omitting from paragraph (3) (d) “section 47a” and substituting “46”.

Commissioner may require further or other returns

52. Section 11 of the Principal Act is amended—

(a) by inserting “an administrator to furnish” after “require”; and

(b) by omitting “lodged” and substituting “furnished”.


 

Amendment of assessments

53. Section 20 of the Principal Act is amended by omitting sub-section (11) and substituting the following sub-sections:

“(11) Where, by reason of an amendment of an assessment, a person’s liability to duty is reduced—

(a) the amount by which the duty is so reduced shall be taken, for the purposes of section 31, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any duty overpaid; or

(ii) apply the amount of any duty overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(12) In this section, unless the contrary intention appears, ‘duty’ includes additional duty under section 31 or 46.”.

Notice of assessment

54. Section 23 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) In sub-section (1), ‘duty’ includes additional duty under section 46.”.

Pending appeal or reference not to affect assessment

55. Section 28b of the Principal Act is amended—

(a) by omitting “estate”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ includes additional duty under section 31 or 46.”.

56. Section 28c of the Principal Act is repealed and the following section is substituted:

Adjustment of duty after appeal

“28c. (1) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to duty is reduced—

(a) the amount by which the duty is so reduced shall be taken, for the purposes of section 31, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any duty overpaid; or

(ii) apply the amount of any duty overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has


 

the general administration, and refund any part of the amount not so applied.

“(2) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to duty is increased, the amount of the increased duty is recoverable from the person.

“(3) In this section, unless the contrary intention appears, ‘duty’ includes additional duty under section 31 or 46.”.

57. Before section 29 of the Principal Act the following section is inserted in Part VI:

Interpretation

“28e. In this Part, unless the contrary intention appears, ‘duty’ includes additional duty under section 46.”.

Date of payment of duty

58. Section 29 of the Principal Act is amended—

(a) by omitting “within” and substituting “at the end of the period of; and

(b) by adding at the end thereof the following sub-section:

“(2) Additional duty under section 46 is due and payable at the end of the period of 30 days after the service by post of a notice of assessment of the additional duty.”.

59. Section 31 of the Principal Act is repealed and the following section is substituted:

Penalty for unpaid duty

“31. (1) If any duty remains unpaid after the time when it became due and payable or would, but for section 30, have become due and payable, additional duty is due and payable by way of penalty by the person liable to pay the duty at the rate of 20% per annum on the amount unpaid, computed from that time or, where, under section 30, the Commissioner has determined that the period for payment of the duty be extended or that payment of the duty may be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the duty was originally due and payable.

“(2) Where additional duty is payable by a person under this section in relation to an amount of duty and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the duty were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;


 

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the duty were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional duty or part of the additional duty; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional duty or part of the additional duty,

the Commissioner may remit the additional duty or part of the additional duty.

“(3) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of duty; or

(b) an amount that includes an amount of duty,

then—

(c) the duty shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional duty that would, but for this paragraph, be payable under this section in relation to the duty shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the duty bears to the amount of the judgment debt.”.

Duty debt due to Commonwealth

60. Section 32 of the Principal Act is amended—

(a) by omitting “The duty assessed under this Act” and substituting “Duty”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Duty may be sued for

61. Section 33 of the Principal Act is amended—

(a) by omitting “, including any additional duty,”; and

(b) by adding at the end thereof the following sub-section:


 

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Duty first charge on estate

62. Section 34 of the Principal Act is amended—

(a) by omitting from sub-section (1) “The duty assessed under this Act” and substituting “Duty”;

(b) by omitting from paragraph (3) (b) “the duty assessed” and substituting “duty”;

(c) by omitting from paragraph (3) (f) “assessed” (first occurring) and substituting “payable”;

(d) by omitting from paragraph (3) (f) “was assessed” and substituting “is payable”; and

(e) by adding at the end thereof the following sub-section:

“(5) In this section, ‘duty’ also includes additional duty under section 31.”.

Apportionment of duty among beneficiaries

63. Section 35 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Apportionment of duty

64. Section 35a of the Principal Act is amended—

(a) by omitting from sub-paragraph (b) (i) “assessed” and substituting “payable”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Registration of duty as charge

65. Section 37 of the Principal Act is amended—

(a) by omitting “assessed under this Act”;

(b) by omitting “assessed with the duty” and substituting “in relation to which the duty is payable”;

(c) by omitting “shall” and substituting “may”; and

(d) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Duty—how payable

66. Section 38 of the Principal Act is amended—

(a) by omitting from sub-section (1) “assessed under this Act”; and


 

(b) by adding at the end thereof the following sub-section:

“(3) In this section, ‘duty’ also includes additional duty under section 31.”.

Commissioner may apply for order to sell

67. Section 39 of the Principal Act is amended—

(a) by omitting “is not paid by the final date fixed for the payment thereof under the authority of this Act” and substituting “due and payable under this Act has not been paid”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

Application of proceeds

68. Section 41 of the Principal Act is amended—

(a) by omitting “and additional duty”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘duty’ also includes additional duty under section 31.”.

69. Sections 46, 47, 47a and 48 of the Principal Act are repealed and the following section is substituted:

Penalty for failure to furnish return, &c.

“46. (1) Where an administrator refuses or fails to furnish, when and as required under or pursuant to this Act or the regulations to do so, a return, or any information, relating to an estate, the administrator is liable to pay, by way of penalty, additional duty equal to double the amount of duty payable by the administrator in respect of the estate.

“(2) Where—

(a) an administrator—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and

(b) the duty properly payable by the administrator exceeds the duty that would have been payable by the administrator if it were assessed on the basis that the statement were not false or misleading, as the case may be,

the administrator is liable to pay, by way of penalty, additional duty equal to double the amount of the excess.


 

“(3) Where, but for this sub-section, an amount of additional duty, being an amount less than $20, is payable by an administrator under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional duty shall be taken to be $20.

“(4) The Commissioner shall make an assessment of the additional duty payable by an administrator under this section in respect of an estate.

“(5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of an estate under sub-section (4) from being incorporated in notice of any other assessment made in respect of the estate under this Act.

“(6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional duty payable by an administrator under this section, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (4) of the additional duty.

“(7) A reference in sub-section (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to paragraph 45 (1) (b).

“(8) A reference in sub-section (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.


 

“(9) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.”.

Release from liability for duty in cases of hardship

70. Section 48a of the Principal Act is amended by adding at the end thereof the following sub-section:

“(13) In this section, ‘duty’ includes additional duty under section 31 or 46.”.

Repeal of section 49

71. Section 49 of the Principal Act is repealed.

Further amendment relating to offences

72. The Principal Act is amended as set out in Schedule 4.

Application of amendments

73. (1) In this section, “amended Act” means the Principal Act as amended by this Act.

(2) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to duty or estate duty included a reference to additional duty, the amendments made by this Act shall be disregarded.

(3) Notwithstanding the repeal of sections 31, 47 and 47a of the Principal Act effected by this Act—

(a) sub-section 31 (3) of the Principal Act, the proviso to sub-section 47a (1) of the Principal Act and sub-section 47a (2) of the Principal Act continue to apply, after the commencement of this section, in relation to a liability for additional duty that accrued before that commencement;

(b) sub-section 47 (2) of the Principal Act continues to apply, after that commencement, in relation to an offence against paragraph 47 (1) (a) or (c) of the Principal Act committed before that commencement; and

(c) sub-section 47 (3) of the Principal Act continues to apply, after that commencement, in relation to a person convicted, whether before or after that commencement, of an offence against paragraph 47 (1) (a) or (b) of the Principal Act,

as if that repeal had not been effected.

(4) Sub-section 31 (3) of the amended Act applies in relation to judgments given or entered after the commencement of this section.


 

PART VI—AMENDMENTS OF THE GIFT DUTY ASSESSMENT ACT 1941

Principal Act

74. The Gift Duty Assessment Act 19475 is in this Part referred to as the Principal Act.

Repeal of sections 6 and 8

75. Sections 6 and 8 of the Principal Act are repealed.

Annual report

76. Section 9 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Amendment of assessments

77. Section 22 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-sections:

“(2) Where, by reason of an amendment of an assessment, a person’s liability to gift duty is reduced—

(a) the amount by which the gift duty is so reduced shall be taken, for the purposes of section 27, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any gift duty overpaid; or

(ii) apply the amount of any gift duty overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(3) In this section, unless the contrary intention appears, ‘gift duty’ includes additional gift duty under section 27 or 42.”.

Notice of assessment

78. Section 24 of the Principal Act is amended by inserting “under section 21 or 23” after “made”.

79. Before section 25 of the Principal Act the following section is inserted in Part V:

Interpretation

“24a. In this Part, unless the contrary intention appears, ‘gift duty’ includes additional gift duty under section 42.”.


 

Liability for gift duty

80. Section 25 of the Principal Act is amended—

(a) by inserting after sub-section (1) the following sub-section:

“(1a) Additional gift duty under section 42 is due and payable on the date specified in the notice of assessment of the additional gift duty as the date on which the additional gift duty is due and payable.”; and

(b) by adding at the end thereof the following sub-section:

“(8) In sub-sections (2), (3), (4), (6) and (7), ‘gift duty’ also includes additional gift duty under section 27.”.

81. Section 27 of the Principal Act is repealed and the following section is substituted:

Penalty for unpaid duty

“27. (1) If any gift duty payable in respect of a gift remains unpaid after the expiration of the period of 30 days after service upon the donor of notice of the assessment made in respect of the gift, additional gift duty is due and payable by way of penalty by the person liable to pay the gift duty at the rate of 20% per annum on the amount unpaid, computed from the expiration of that period, or, where, under section 26, the Commissioner has granted an extension of time for payment of the gift duty or has permitted payment of the gift duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the thirtieth day after service of the notice of assessment upon the donor.

“(2) If any penalty duty remains unpaid after the time when it became due and payable or would, but for section 26, have become due and payable, additional gift duty is due and payable by way of penalty by the person liable to pay the penalty duty at the rate of 20% per annum on the amount unpaid, computed from that time, or, where, under section 26, the Commissioner has granted an extension of time for payment of the penalty duty or has permitted payment of the penalty duty to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the penalty duty was originally due and payable.

“(3) Where additional gift duty is payable by a person under this section in relation to an amount of gift duty and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the gift duty were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;


 

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the gift duty were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional gift duty or part of the additional gift duty,

the Commissioner may remit the additional gift duty or part of the additional gift duty.

“(4) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of gift duty; or

(b) an amount that includes an amount of gift duty,

then—

(c) the gift duty shall not be taken, for the purposes of sub-sections (1) and (2), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional gift duty that would, but for this paragraph, be payable under this section in relation to the gift duty shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the gift duty bears to the amount of the judgment debt.

“(5) In sub-sections (3) and (4), unless the contrary intention appears, ‘gift duty’ includes penalty duty.

“(6) In this section, ‘penalty duty’ means additional gift duty under section 42.”.

Duty may be sued for

82. Section 28 of the Principal Act is amended—

(a) by omitting “, including any additional duty,”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘gift duty’ also includes additional gift duty under section 27.”.


 

Registration of duty as charge

83. Section 29 of the Principal Act is amended—

(a) by omitting “assessed under this Act as is attributable” and substituting “as relates”;

(b) by omitting “shall” and substituting “may”; and

(c) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘gift duty’ also includes additional gift duty under section 27.”.

No limitation of action

84. Section 30 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘gift duty’ also includes additional gift duty under section 27.”.

Objections and appeals

85. Section 31 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(5) In sub-section (1), ‘gift duty’ includes additional gift duty under section 42.”.

Pending appeal or reference not to affect assessment

86. Section 37 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘gift duty’ includes additional gift duty under section 27 or 42.”.

87. Section 38 of the Principal Act is repealed and the following section is substituted:

Adjustment of duty after appeal

“38. (1) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to gift duty is reduced—

(a) the amount by which the gift duty is so reduced shall be taken, for the purposes of section 27, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any gift duty overpaid; or

(ii) apply the amount of any gift duty overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.


 

“(2) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to gift duty is increased, the amount of the increased gift duty is recoverable from the person.

“(3) In this section, unless the contrary intention appears, ‘gift duty’ includes additional gift duty under section 27 or 42.”.

88. Sections 42 to 46 (inclusive) of the Principal Act are repealed and the following section is substituted:

Penalty for failure to furnish return, &c.

“42. (1) Where a person refuses or fails to furnish, when and as required under or pursuant to this Act or the regulations to do so, a return, or any information, relating to a gift, the person is liable to pay, by way of penalty, additional gift duty equal to double the amount of gift duty payable by the person in respect of the gift.

“(2) Where—

(a) a person—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and

(b) the gift duty properly payable by the person exceeds the gift duty that would have been payable by the person if it were assessed or determined on the basis that the statement were not false or misleading, as the case may be,

the person is liable to pay, by way of penalty, additional gift duty equal to double the amount of the excess.

“(3) Where, but for this sub-section, an amount of additional gift duty, being an amount less than $20, is payable by a person under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional gift duty shall be taken to be $20.

“(4) The Commissioner shall make an assessment of the additional gift duty payable by a person under this section and shall, as soon as practicable after the assessment is made, serve notice of the assessment in writing, by post or otherwise, upon the person.

“(5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of a person under sub-section (4) from being incorporated in notice of any other assessment made in respect of the person under this Act.


 

“(6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional gift duty payable by a person under this section, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (4) of the additional gift duty.

“(7) A reference in sub-section (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to paragraph 39 (1) (b).

“(8) A reference in sub-section (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

“(9) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.”.

Further amendments relating to offences

89. The Principal Act is amended as set out in Schedule 5.


 

Application of amendments

90. (1) In this section, “amended Act” means the Principal Act as amended by this Act.

(2) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to gift duty included a reference to additional gift duty, the amendments made by this Act shall be disregarded.

(3) Notwithstanding the repeal of sections 27, 42, 43, 45 and 46 of the Principal Act effected by this Act—

(a) the proviso to section 27 of the Principal Act and sub-sections 42 (3) and (4) of the Principal Act continue to apply, after the commencement of this section, in relation to a liability for additional gift duty that accrued before that commencement;

(b) sub-sections 43 (2) and 46 (2) of the Principal Act continue to apply, after that commencement, in relation to offences against sections 43 and 46 of the Principal Act committed before that commencement; and

(c) section 45 of the Principal Act continues to apply, after that commencement, in relation to a person convicted, whether before or after that commencement, of an offence against section 43 or 44 of the Principal Act,

as if that repeal had not been effected.

(4) Sub-section 27 (4) of the amended Act applies in relation to judgments given or entered after the commencement of this section.

PART VII—AMENDMENTS OF THE INCOME TAX ASSESSMENT ACT 1936

Principal Act

91. The Income Tax Assessment Act 19366 is in this Part referred to as the Principal Act.

Interpretation

92. Section 6 of the Principal Act is amended—

(a) by omitting from sub-section (1) the definition of “assessment” and substituting the following definition:

“‘assessment’ means—

(a) the ascertainment of the amount of taxable income and of the tax payable thereon; or

(b) the ascertainment of the amount of additional tax payable under a provision of Part VII;”; and

(b) by inserting after sub-section (1) the following sub-section:


 

“(1a) Unless the contrary intention appears, a reference in this Act to a failure to do an act or thing includes a reference to a refusal to do the act or thing.”.

Repeal of sections 10 and 13

93. Sections 10 and 13 of the Principal Act are repealed.

Annual report

94. Section 14 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Losses and outgoings

95. Section 51 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(4) A deduction is not allowable under sub-section (1) in respect of—

(a) an amount, however described, payable, or expressed to be payable, by way of penalty under a law of the Commonwealth, a State, a Territory or a foreign country; or

(b) an amount ordered by a court, upon the conviction of a person for an offence against a law of the Commonwealth, a State, a Territory or a foreign country, to be paid by the person.”.

Qualifying expenditure

96. Section 124zb of the Principal Act is amended by omitting from paragraph (1) (f) “clauses” and substituting “sub-sub-paragraphs”.

Payment of withholding tax

97. Section 128c of the Principal Act is amended—

(a) by inserting in sub-section (3) “, by way of penalty,” after “additional tax”; and

(b) by inserting after sub-section (4) the following sub-section:

“(4a) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of withholding tax; or

(b) an amount that includes an amount of withholding tax,

then—

(c) the withholding tax shall not be taken, for the purposes of sub-section (3), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional tax that would, but for this paragraph, be payable under this section in


 

relation to the withholding tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the withholding tax bears to the amount of the judgment debt.”.

Application of credits

98. Section 160an of the Principal Act is amended by omitting sub-section (6).

State credits

99. Section 160ap of the Principal Act is amended by omitting sub-section (4).

Amendment of assessments

100. Section 170 of the Principal Act is amended—

(a) by inserting in sub-section (14) “, unless the contrary intention appears” after “section” (first occurring); and

(b) by inserting after the definition of “relevant provision” in sub-section (14) the following definition:

“‘tax’ includes additional tax under Part VII;”.

101. Section 172 of the Principal Act is repealed and the following section is substituted:

Refund of amounts overpaid

“172. (1) Where, by reason of an amendment of an assessment, a person’s liability to tax is reduced—

(a) the amount by which the tax is so reduced shall be taken, for the purposes of section 207, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any tax overpaid; or

(ii) apply the amount of any tax overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(2) In sub-section (1), unless the contrary intention appears, ‘tax’ includes additional tax under section 207 or Part VII.”.

Notice of assessment

102. Section 174 of the Principal Act is amended by adding at the end thereof the following sub-section:


 

“(3) In sub-section (1), ‘tax’ includes additional tax under Part VII.”.

103. Section 182 of the Principal Act is repealed and the following section is substituted:

Remuneration and allowances of members

“182. (1) The Chairman and the other members of a Board shall be paid such remuneration as is determined by the Remuneration Tribunal.

“(2) The Chairman and the other members of a Board shall be paid such allowances as are prescribed.

“(3) This section has effect subject to the Remuneration Tribunals Act 1973.”.

Interpretation

104. Section 184a of the Principal Act is amended by omitting all the words after “Northern Territory”.

Repeal of section 184b

105. Section 184b of the Principal Act is repealed.

Powers of Board

106. Section 193 of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-sections:

“(2) The Board does not have power to review decisions of the Commissioner relating to the remission of additional tax payable by a taxpayer except decisions relating to the remission of additional tax under Part VII where the additional tax payable, after the making by the Commissioner of the decision, exceeds—

(a) in the case of additional tax payable under section 222 by reason of the refusal or failure to furnish a return, or any information, relating to a year of income—the amount calculated, in respect of the period commencing on the last day allowed for furnishing the return or information and ending on the day on which the return or information is furnished or the day on which the assessment of the additional tax is made, whichever first happens, at the rate of 20% per annum of the tax properly payable by the taxpayer in respect of the year of income;

(b) in the case of additional tax payable under section 223 by reason of the making of a statement—

(i) if the statement relates to only one year of income—the amount calculated, in respect of the period commencing on the day that is the prescribed day in relation to the taxpayer in relation to the year of income and ending on the day on which the assessment of the additional tax is made, at the rate of 20% per annum of the amount of relevant affected tax in relation to the taxpayer in relation to the year of income; or


 

(ii) if the statement relates to 2 or more years of income—the sum of the amounts calculated in relation to each of those years of income, in respect of the period commencing on the day that is the prescribed day in relation to the taxpayer in relation to the year of income and ending on the day on which the assessment of the additional tax is made, at the rate of 20% per annum of the amount of relevant affected tax in relation to the taxpayer in relation to the year of income;

(c) in the case of additional tax payable under section 224, 225 or 226 in relation to a year of income—the amount calculated, in respect of the period commencing on the day that is the prescribed day in relation to the taxpayer in relation to the year of income and ending on the day on which the assessment of additional tax is made, at the rate of 20% per annum of the amount of relevant affected tax in relation to the taxpayer in relation to the year of income; or

(d) if the amount calculated in accordance with paragraph (a), (b) or (c) is less than $20—$20.

“(3) The Board does not have power to review decisions of the Commissioner relating to the remission of additional tax payable by a person who is not a taxpayer except decisions relating to the remission of additional tax payable by a trustee of a trust estate under sub-section 223 (4) where the additional tax, after the making by the Commissioner of the decision, exceeds $20.

“(4) In sub-section (2)—

‘prescribed day’, in relation to a taxpayer in relation to a year of income, means the last day of the time allowed to the taxpayer for furnishing to the Commissioner a return in relation to the income of the taxpayer of the year of income;

‘relevant affected tax’, in relation to a taxpayer in relation to a year of income, means—

(a) in a case where paragraph (2) (b) applies—whichever of the following is applicable in relation to the taxpayer in relation to the year of income, namely, the excess referred to in sub-section 223 (1), paragraph 223 (2) (c) or (d) or sub-section 223 (4) or, if paragraph 223 (2) (e) is so applicable, one half of the sum referred to in that paragraph;

(b) in a case where paragraph (2) (c) applies in relation to additional tax payable under section 224—the amount of the difference referred to in whichever of paragraphs 224 (1) (e) and (f) is applicable in relation to the taxpayer in relation to the year of income; or

(c) in a case where paragraph (2) (c) applies in relation to additional tax payable under section 225 or 226 and—

(i) sub-paragraph 225 (1) (c) (i) or 226 (c) (i) applies in relation to the additional tax—the amount of the tax referred to in paragraph 225 (1) (a) or 226 (a), as the


 

case requires, in relation to the taxpayer in relation to the year of income; or

(ii) sub-paragraph 225 (1) (c) (ii) or 226 (c) (ii) applies in relation to the additional tax—the amount by which the amount of the tax referred to in paragraph 225 (1) (a) or 226 (a), as the case requires, in relation to the taxpayer in relation to the year of income exceeds the amount that is the amount referred to in sub-section 225 (1) or section 226, as the case requires, as the amount of claimed tax in relation to the taxpayer in relation to the year of income.”.

Pending appeal not to delay payment of tax

107. Section 201 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘income tax’ includes additional tax under section 207 or Part VII.”.

108. Section 202 of the Principal Act is repealed and the following section is substituted:

Adjustment of tax after appeal

“202. (1) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to tax is reduced—

(a) the amount by which the tax is so reduced shall be taken, for the purposes of section 207, never to have been payable; and

(b) the Commissioner shall—

(i) refund the amount of any tax overpaid; or

(ii) apply the amount of any tax overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(2) Where, by reason of an alteration of an assessment on an appeal or reference, a person’s liability to tax is increased, the amount of the increased tax is recoverable from the person.

“(3) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under section 207 or Part VII.”.

When tax payable

109. Section 204 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘income tax’ includes additional tax under Part VII.”.


 

Taxpayer leaving Australia

110. Section 205 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under Part VII.”.

Extension of time and payment by instalments

111. Section 206 of the Principal Act is amended—

(a) by inserting “of tax” after “payment” (wherever occurring); and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under Part VII.”.

Penalty for unpaid tax

112. Section 207 of the Principal Act is amended—

(a) by inserting in sub-section (1) “by way of penalty by the person liable to pay the tax” after “is due and payable”;

(b) by omitting from sub-section (1a) “sub-section (1)” and substituting “this section”;

(c) by inserting after sub-section (1a) the following sub-section:

“(1b) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of tax; or

(b) an amount that includes an amount of tax,

then—

(c) the tax shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional tax that would, but for this paragraph, be payable under this section in relation to the tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the tax bears to the amount of the judgment debt.”; and

(d) by adding at the end thereof the following sub-section:

“(3) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under Part VII.”.


 

Tax a debt due to the Commonwealth

113. Section 208 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘income tax’ includes additional tax under section 207 or Part VII.”.

Recovery of tax

114. Section 209 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under section 207 or Part VII.”.

Substituted service

115. Section 214 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘income tax’ includes additional tax under section 207 or Part VII.”.

Liquidators, &c.

116. Section 215 of the Principal Act is amended—

(a) by omitting sub-section (3d) and substituting the following sub-section:

“(3d) In sub-section (3), ‘prescribed tax’ means—

(a) tax within the meaning of sub-section 30 (2) of the Pay-roll Tax (Territories) Assessment Act 1971;

(b) tax within the meaning of sub-section 32 (2) of the Sales Tax Assessment Act (No. 1) 1930 or of that sub-section as applied by Part V of the Sales Tax Assessment Act (No. 2) 1930, Part V of the Sales Tax Assessment Act (No. 3) 1930, Part V of the Sales Tax Assessment Act (No. 4) 1930, Part V of the Sales Tax Assessment Act (No. 5) 1930, Part V of the Sales Tax Assessment Act (No. 6) 1930, Part V of the Sales Tax Assessment Act (No. 7) 1930, Part V of the Sales Tax Assessment Act (No. 8) 1930 or Part V of the Sales Tax Assessment Act (No. 9) 1930;

(c) Taxation Laws Amendment No. 123, 1984 charge within the meaning of sub-section 27 (2) of the Tobacco Charges Assessment Act 1955; or

(d) tax within the meaning of sub-section 47 (2) of the Wool Tax (Administration) Act 1964”; and

(b) by adding at the end thereof the following sub-section:

“(6) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under section 207 or Part VII.”.


 

When tax not paid during lifetime

117. Section 216 of the Principal Act is amended—

(a) by omitting “, whether intentionally or not, a taxpayer escapes full taxation in his lifetime by reason of not having duly made full complete and accurate returns” and substituting “, at the time of a taxpayer’s death, tax has not been assessed or paid on the whole of the income derived by the taxpayer up to the time of the death of the taxpayer or additional tax under Part VII to which the taxpayer is liable has not been assessed or paid”;

(b) by omitting from paragraph (a) “against the trustees of the estate of the taxpayer in respect of the taxable income of the taxpayer” and substituting “for the assessment and recovery of tax from the trustees of the estate of the taxpayer in respect of the liability to which the taxpayer was subject”;

(c) by inserting after paragraph (a) the following paragraph:

“(aa) The trustees shall furnish a return of any income derived by the deceased person in respect of which no return was lodged by the deceased person.”; and

(d) by omitting from paragraph (b) “make” and substituting “furnish”; and

(e) by adding at the end thereof the following sub-sections:

“(2) Where the trustees are unable or refuse or fail to furnish a return, the Commissioner may make an assessment of the amount on which, in the Commissioner’s judgment, tax ought to be levied and the trustees shall be liable to pay tax as if that amount were the taxable income of the deceased person.

“(3) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under section 207 or Part VII.”.

Repeal of section 217

118. Section 217 of the Principal Act is repealed.

Commissioner may collect tax from person owing money to taxpayer

119. Section 218 of the Principal Act is amended—

(a) by omitting paragraphs (1) (i) and (ii) and substituting the following paragraphs:

“(e) so much of the money as is sufficient to pay the amount due by the taxpayer in respect of tax or, if the amount of the money is equal to or less than the amount due by the taxpayer in respect of tax, the amount of the money; or

(f) such amount as is specified in the notice out of each payment that the person so notified becomes liable from time to time to make to the taxpayer until the amount due by the taxpayer in respect of tax is satisfied,”; and


 

(b) by omitting sub-section (6) and substituting the following sub-sections:

“(6) Where—

(a) money has been paid by a person to a building society in respect of the issue of shares in the capital of the society (not being shares listed for quotation on a Stock Exchange); and

(b) the money has not been repaid,

the money shall, for the purposes of this section, be taken—

(c) in a case where the money is repayable on demand—to be due by the building society to the person; or

(d) in any other case—to be money that may become due by the building society to the person.

“(6a) Where, but for this sub-section, money is not due, or repayable on demand, to a person unless a condition is fulfilled, the money shall be taken, for the purposes of this section, to be due, or repayable on demand, as the case may be, to the person notwithstanding that the condition has not been fulfilled.

“(6b) In this section—

‘building society’ means a society registered or incorporated as a building society, co-operative housing society or other similar society under the law in force in a State or Territory;

‘person’ includes a company, a partnership, the Commonwealth, a State, a Territory and any public authority (whether incorporated or unincorporated) of the Commonwealth or a State or Territory;

‘tax’ includes—

(a) additional tax under section 207 or Part VII;

(b) an amount that a person is liable to pay to the Commissioner under Division 1a, 2, 3 or 3a;

(c) a judgment debt or costs in respect of—

(i) tax;

(ii) additional tax under section 207 or Part VII; or

(iii) an amount that a person is liable to pay to the Commissioner under Division 1a, 2, 3 or 3a;

(d) any fine or costs imposed by a court in respect of—

(i) an offence against this Act or the regulations; or

(ii) any other taxation offence within the meaning of Part III of the Taxation Administration Act 1953 that relates to this Act or the regulations; or

(e) any amount ordered by a court, upon the conviction of a person for an offence of a kind referred to in paragraph (d), to be paid by the person to the Commissioner;

‘taxpayer’ includes a person who is liable to pay an amount to the Commissioner under Division 1a, 2, 3 or 3a.”.


 

Assessment where no administration

120. Section 220 of the Principal Act is amended—

(a) by omitting sub-section (1) and substituting the following sub-section:

“(1) Where, in respect of the estate of a deceased taxpayer, neither probate has been granted nor letters of administration have been taken out within 6 months of the death of the taxpayer, and—

(a) tax has not been assessed or paid on the whole of the income derived by the taxpayer up to the time of the death of the taxpayer; or

(b) additional tax under Part VII to which the taxpayer is liable has not been assessed or paid,

the Commissioner may make an assessment of the tax payable by the estate of the taxpayer.”;

(b) by omitting from sub-section (5) “(including tax assessed under a provision of a State income tax law corresponding with this section)” and substituting “and any additional tax under section 207 payable in relation to that tax”; and

(c) by adding at the end thereof the following sub-section:

“(8) In this section, unless the contrary intention appears, ‘tax’ includes additional tax under Part VII.”.

Interpretation

121. Section 221aa of the Principal Act is amended—

(a) by omitting from sub-sections (2) and (3) “, 218”; and

(b) by omitting from sub-section (2) “in accordance with” and substituting “under”; and

(c) by omitting from sub-section (3) “in accordance with sub-sections 221ag (6) and (7)” and substituting “under sub-section 221ag (6), (7), (7a) or (7b)”.

Amount of instalment of tax

122. Section 221ae of the Principal Act is amended by inserting after sub-section (1) the following sub-sections:

“(1a) Where the amount that would, but for this sub-section, be payable by a company as an instalment of tax in respect of its income of a year of income is less than—

(a) $250; or

(b) if the Commissioner has determined another amount under sub-section (1b) in relation to the year of income, that other amount,

then, unless the Commissioner otherwise determines in relation to the company or a specified class of companies in which the company is included, the instalment is not payable.


 

“(1b) For the purposes of this section, the Commissioner may, by notice published in the Gazette, determine an amount other than $250 as the minimum amount in relation to instalments of tax payable by companies in respect of income of a specified year of income and each subsequent year of income.”.

Estimated income tax

123. Section 221ag of the Principal Act is amended—

(a) by inserting in sub-section (1) “or within such further period as the Commissioner allows” after “payable,” (first occurring);

(b) by inserting after sub-section (5) the following sub-section:

“(5a) Where—

(a) 2 or 3 instalments of tax in respect of the income of a company of a year of income are due and payable on the same day;

(b) the same date is shown on each of the notices served on the company under sub-section 221af (1) in respect of those instalments as being the date of issue of the notice; and

(c) the amount payable by the company as one of those instalments of tax is required to be ascertained under sub-section (4) or sub-paragraph (5) (b) (i),

the amount of the other instalment, or each of those other instalments, of tax payable by the company in respect of its income of the year of income is an amount equal to the amount so ascertained.”;

(c) by inserting in sub-section (6) “by way of penalty,” after “additional tax,” (first occurring);

(d) by inserting in sub-section (6) “(in sub-section (7a) referred to as the ‘prescribed amount’)” after “on the amount”;

(e) by omitting from sub-section (6) all the words after “whichever is the” (last occurring) and substituting “greater”;

(f) by inserting in sub-section (7) “by way of penalty,” after “additional tax,” (first occurring);

(g) by omitting from sub-section (7) all the words after “whichever is the” (last occurring) and substituting “greater”; and

(h) by inserting after sub-section (7) the following sub-sections:

“(7a) Where—

(a) but for the operation of sub-section 221ad (2b) or sub-sections 221ad (2b) and 221ae (1a), a company would have been liable to pay an instalment of tax, or 2 instalments of tax, in respect of its income of a year of income;

(b) the estimated income tax is—

(i) nil; or

(ii) an amount less than—

(a) $1,000; or


 

(b) if the Commissioner has made a determination under sub-section 221ae (1b) in relation to the year of income, 4 times the amount determined by the Commissioner under that sub-section in relation to the year of income; and

(c) additional tax under sub-section (6) is due and payable by the company in respect of the year of income,

then, additional tax, by way of penalty, in respect of the instalment of tax or each instalment of tax, as the case may be, in respect of the period—

(d) commencing on—

(i) 16 November in the relevant year of tax; or

(ii) 16 February in the relevant year of tax,

whichever is the earliest day on which, but for the operation of sub-section 221ad (2b) or sub-sections 221ad (2b) and 221ae (1a), as the case may be, the instalment of tax would have been due and payable by the company if a notice under sub-section 221af (1) had been duly served on the company in relation to the instalment of tax not later than 30 days before that day; and

(e) ending on the day on which the amount of income tax payable by the company in respect of its taxable income of the year of income became due and payable,

is due and payable by the company at the rate of 20% per annum on an amount equal to the prescribed amount.

“(7b) Where—

(a) sub-section (5a) applies in relation to instalments of tax in respect of the income of a company of a year of income; and

(b) additional tax under sub-section (6) is due and payable by the company in respect of the year of income,

additional tax, by way of penalty, equal to—

(c) in a case where sub-section (5a) applies in relation to 3 instalments of tax—double the amount of additional tax referred to in paragraph (b) of this sub-section; or

(d) in a case where sub-section (5a) applies in relation to 2 instalments of tax—the amount of additional tax referred to in paragraph (b) of this sub-section,

is due and payable by the company.

“(7c) Where the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to do so, the Commissioner may remit the whole or any part of any additional tax payable by the company under sub-section (6), (7), (7a) or (7b).”.


 

Notice of alteration of amount of instalment

124. Section 221ah of the Principal Act is amended—

(a) by omitting sub-paragraph (1) (b) (ii) and substituting the following sub-paragraph:

(ii) the operation of sub-section 221ae (1a), (5) or (6) or 221ag (4), (5) or (5a),”; and

(b) by adding at the end thereof the following sub-section:

“(3) Where—

(a) sub-section 221ag (5a) applies in relation to instalments of tax in respect of the income of a company of a year of income; and

(b) a notice is served on the company under sub-section (2) of this section specifying—

(i) the amount of the increase in an instalment of tax in respect of the income of the company of the year of income that became payable by reason of sub-section 221ag (5); and

(ii) a date as the due date for payment of that amount,

so much of each of the other instalments of tax referred to in paragraph (a) as is equal to the amount referred to in sub-paragraph (b) (i) is, notwithstanding the provisions of section 221af, due and payable on the date so specified.”.

Interpretation

125. Section 221a of the Principal Act is amended by inserting after the definition of “employer” in sub-section (1) the following definition:

“‘government body’ means the Commonwealth, a State, a Territory or an authority of the Commonwealth or a State or Territory;”.

126. After section 221e of the Principal Act the following section is inserted:

Failure to make deductions from salary or wages

“221eaa. (1) Where an employer other than a government body refuses or fails, at the time of paying salary or wages to an employee, to deduct from the salary or wages the amount required to be deducted under this Division, the employer is liable to pay to the Commissioner, by way of penalty—

(a) an amount (in this sub-section referred to as the ‘undeducted amount’) equal to the amount that the employer refused or failed to deduct; and

(b) an amount equal to 20% per annum of so much of the undeducted amount as remains unpaid, computed from—

(i) in a case where the employer is a group employer—the expiration of the period within which the employer, had the employer deducted the amount required to be deducted under


 

this Division, would have been required to pay the amount of the deduction to the Commissioner; or

(ii) in any other case—the day next following the last day that would have been allowed to the employer, had the employer deducted the amount required to be deducted under this Division, for affixing tax stamps of a face value equal to the amount of the deduction as required by this Division.

“(2) Where an employer, being a government body other than the Commonwealth, refuses or fails, at the time of paying salary or wages to an employee, to deduct from the salary or wages the amount required to be deducted under this Division, the employer is liable to pay to the Commissioner, by way of penalty, an amount equal to 20% per annum of the amount that the employer refused or failed to deduct in respect of the period commencing on the day on which the employer was required to make the deduction and ending on 30 June in the financial year in which that day occurred.”.

Group employers

127. Section 221f of the Principal Act is amended by omitting sub-sections (10), (10a), (11) and (12) and substituting the following sub-sections:

“(10) Where the Commissioner makes a credit or payment as mentioned in sub-section (9), the Commissioner shall, as soon as practicable after the credit or payment is made, serve on the group employer, by post or otherwise, a notice in writing specifying the amount payable by the group employer to the Commissioner under that sub-section.

“(11) An amount payable by a group employer under sub-section (9) shall be paid to the Commissioner not later than the day specified in the notice under sub-section (10) in relation to the amount as the day on which the amount is due and payable.

“(12) Where an amount (in this sub-section referred to as the ‘principal amount’) payable to the Commissioner by a group employer other than the Commonwealth by virtue of paragraph (5) (a) (including that paragraph as varied under sub-section (7)) or under sub-section (9), remains unpaid after the time by which it is required to be paid—

(a) the principal amount continues to be payable by the group employer to the Commissioner; and

(b) the group employer is liable to pay to the Commissioner, by way of penalty—

(i) in a case where the group employer is a government body—an amount at the rate of 20% per annum on so much of the principal amount as remains unpaid, computed from that time; and


 

(ii) in any other case—

(a) an amount (in this sub-paragraph referred to as the ‘relevant penalty amount’) equal to 20% of the principal amount; and

(b) an amount at the rate of 20% per annum on the sum of so much of the principal amount as remains unpaid and so much of the relevant penalty amount as remains unpaid, computed from that time.”.

Employers other than group employers

128. Section 221g of the Principal Act is amended by inserting after sub-section (4) the following sub-section:

“(4a) Where—

(a) an employer, other than a group employer or the Commonwealth, makes a deduction for the purposes of this Division from the salary or wages of an employee and refuses or fails to affix tax stamps of a face value equal to the amount of the deduction as required by this Division; and

(b) an amount (in this sub-section referred to as the ‘principal amount’) that the employer is liable to pay to the Commissioner under sub-section 221p (1) by virtue of the refusal or failure remains unpaid after the time at which it becomes payable,

the employer is liable to pay to the Commissioner, by way of penalty—

(c) in a case where the employer is a government body—an amount at the rate of 20% per annum on so much of the principal amount as remains unpaid, computed from that time; or

(d) in any other case—

(i) an amount (in this paragraph referred to as the ‘relevant penalty amount’) equal to 20% of the principal amount; and

(ii) an amount at the rate of 20% per annum on the sum of so much of the principal amount as remains unpaid and so much of the relevant penalty amount as remains unpaid, computed from that time.”.

129. Section 221n of the Principal Act is repealed and the following sections are substituted:

Remission of certain amounts

“221n. (1) Where an amount (in this section referred to as the ‘late payment penalty’) is payable by an employer by virtue of paragraph 221eaa (1) (b), sub-paragraph 221f (12) (b) (i), sub-sub-paragraph 221f (12) (b) (ii) (b), paragraph 221g (4a) (c) or sub-paragraph


 

221g (4a) (d) (ii) in relation to another amount (in this sub-section referred to as the ‘principal amount’) that has not been paid and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the principal amount were not due to, or caused directly or indirectly by, an act or omission of the employer; and

(ii) the employer has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the principal amount were due to, or caused directly or indirectly by, an act or omission of the employer;

(ii) the employer has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the late payment penalty or part of the late payment penalty; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the late payment penalty or part of the late payment penalty,

the Commissioner may remit the late payment penalty or part of the late payment penalty.

“(2) The Commissioner may remit the whole or part of any amount payable by an employer by virtue of paragraph 221eaa (1) (a), sub-section 221eaa (2), sub-sub-paragraph 221f (12) (b) (ii) (a) or sub-paragraph 221g (4a) (d) (i).

Reduction of late payment penalty where judgment debt carries interest

“221na. (1) Where judgment is given by, or entered in, a court for the payment of—

(a) the whole or a part of a principal amount; or

(b) an amount that includes the whole or a part of a principal amount,

then—

(c) the principal amount or the part of the principal amount, as the case may be, shall not be taken, for the purposes of paragraph 221eaa (1) (b), sub-paragraph 221f (12) (b) (i), sub-sub-paragraph 221f (12) (b) (ii) (b), paragraph 221g (4a) (c) or sub-paragraph 221g (4a) (d) (ii), as the case may be, to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the amount that would, but for this paragraph, be payable by virtue of paragraph 221eaa (1) (b), sub-paragraph 221f (12) (b) (i), sub-sub-paragraph 221f (12) (b) (ii) (b), paragraph 221g (4a) (c) or sub-paragraph 221g (4a) (d) (ii), as the case may be, in relation to the principal


 

amount or the part of the principal amount, as the case may be, shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the principal amount or the part of the principal amount, as the case may be, bears to the amount of the judgment debt.

“(2) In sub-section (1), ‘principal amount’ means—

(a) an amount of the kind referred to in sub-section 221eaa (1) as the undeducted amount;

(b) an amount of the kind referred to in sub-section 221f (12) as the principal amount;

(c) an amount of the kind referred to in sub-paragraph 221f (12) (b) (ii) as the relevant penalty amount;

(d) an amount of the kind referred to in sub-section 221g (4a) as the principal amount; or

(e) an amount of the kind referred to in paragraph 221g (4a) (d) as the relevant penalty amount.

Penalties to be alternative to prosecution for certain offences

“221nb. (1) Where—

(a) but for this sub-section, an amount is payable, by way of penalty, by a person to the Commissioner under this Division by reason of an act or omission of the person; and

(b) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the amount is not payable unless and until the prosecution is withdrawn.

“(2) Where—

(a) a person is liable to pay, by way of penalty, an amount (in this sub-section referred to as the ‘penalty amount’) to the Commissioner under this Division by reason of an act or omission of the person;

(b) an amount (in this sub-section referred to as the ‘relevant amount’) is paid, or applied by the Commissioner, in total or partial discharge of the liability; and

(c) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the relevant amount shall be refunded to the person or applied by the Commissioner in total or partial discharge of a tax liability of the person, but, if the prosecution is withdrawn, the person shall again become liable to pay the penalty amount.

“(3) In sub-section (2), ‘tax liability’ means tax liability as defined in section 2 of the Taxation Administration Act 1953.


 

Employer not accounting for deductions

130. Section 221p of the Principal Act is amended by inserting in sub-section (1) “refuses or” before “fails”.

Employer failing to issue group certificate or deliver tax stamps sheet

131. Section 221q of the Principal Act is amended by inserting in sub-section (1) “refused or” before “failed”.

Repeal of section 221u

132. Section 221u of the Principal Act is repealed.

Interpretation

133. Section 221ya of the Principal Act is amended—

(a) by omitting from sub-section (2) “, 218”; and

(b) by inserting in sub-section (2) “and additional tax under section 221ydb” after “provisional tax”.

Additional tax where income underestimated

134. Section 221ydb of the Principal Act is amended—

(a) by omitting from sub-section (1) “, by way of additional tax, an amount equal to 10%” and substituting “additional tax, by way of penalty, equal to 20%”; and

(b) by inserting after sub-section (1a) the following sub-sections:

“(1b) Where a taxpayer becomes liable to pay to the Commissioner an amount of additional tax under sub-section (1), the Commissioner shall serve on the taxpayer notice in writing specifying—

(a) the amount of additional tax; and

(b) a date as the due date for payment of the additional tax, being a date not less than 14 days after the day of service of the notice.

“(1c) Nothing in this Act shall be taken to preclude notice under sub-section (1b) given in respect of a taxpayer from being incorporated in notice of an assessment made in respect of the taxpayer under this Act.”.

Interpretation

135. Section 221yha of the Principal Act is amended—

(a) by omitting “or the Northern Territory,” from the definition of “government body” in sub-section (1) and substituting “, a Territory”; and

(b) by omitting “, of a State or of the Northern Territory” from the definition of “government body” in sub-section (1) and substituting “or a State or Territory”.


 

Failure to make deductions from prescribed payments

136. Section 221yhh of the Principal Act is amended—

(a) by inserting in sub-section (1) “refuses or” after “body”;

(b) by omitting from paragraph (1) (a) “section” and substituting “sub-section”;

(c) by omitting from paragraph (1) (b) all the words after “within which” and substituting “the eligible paying authority, had the eligible paying authority deducted the amount required to be deducted under this Division, would have been required to pay the amount of the deduction to the Commissioner”;

(d) by inserting in sub-section (2) “refuses or” after “Commonwealth,”;

(e) by omitting from sub-section (2) “the undeducted amount in respect of the period commencing on the expiration of the period within which the amount that the eligible paying authority failed to deduct would have been required to be paid to the Commissioner” and substituting “the amount that the eligible paying authority refused or failed to deduct in respect of the period commencing on the expiration of the period within which the eligible paying authority, had it deducted the amount required to be deducted under this Division, would have been required to pay the amount of the deduction to the Commissioner”; and

(f) by omitting sub-section (3).

Failure to pay amounts deducted to Commissioner

137. Section 221yhj of the Principal Act is amended by omitting sub-sections (1) and (2) and substituting the following sub-section:

“(1) Where an amount (in this sub-section referred to as the ‘principal amount’) payable to the Commissioner by an eligible paying authority other than the Commonwealth by virtue of sub-sub-paragraph 221yhd (1) (b) (v) (a) or sub-paragraph 221yhd (1d) (c) (i) remains unpaid after the expiration of the period within which it is required to be paid—

(a) the principal amount continues to be payable by the eligible paying authority to the Commissioner; and

(b) the eligible paying authority is liable to pay to the Commissioner, by way of penalty—

(i) in a case where the eligible paying authority is a government body—an amount at the rate of 20% per annum on so much of the principal amount as remains unpaid, computed from the expiration of that period; and

(ii) in any other case—

(a) an amount (in this sub-paragraph referred to as the ‘relevant penalty amount’) equal to 20% of the principal amount; and

(b) an amount at the rate of 20% per annum of the sum of so much of the principal amount as remains unpaid and so


 

much of the relevant penalty amount as remains unpaid, computed from the expiration of that period.”.

Failure to furnish deduction form, &c.

138. Section 221yhk of the Principal Act is amended—

(a) by inserting in paragraph (1) (a) “refuses or” before “fails”;

(b) by inserting in sub-paragraph (1) (c) (iii) “refused or” before “failed”; and

(c) by omitting sub-section (2).

Remission of certain amounts

139. Section 221yhl of the Principal Act is amended by inserting in sub-section (2) “sub-section 221yhh (2),” after “paragraph 221yhh (1) (a),”.

140. After section 221yhl of the Principal Act the following sections are inserted:

Reduction of late payment penalty where judgment debt carries interest

“221yhla. (1) Where judgment is given by, or entered in, a court for the payment of—

(a) the whole or a part of a principal amount; or

(b) an amount that includes the whole or a part of a principal amount,

then—

(c) the principal amount or the part of the principal amount, as the case may be, shall not be taken, for the purposes of paragraph 221yhh (1) (b), sub-paragraph 221yhj (1) (b) (i) or sub-sub-paragraph 221yhj (1) (b) (ii) (b), as the case requires, to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the amount that would, but for this paragraph, be payable by virtue of paragraph 221yhh (1) (b), sub-paragraph 221yhj (1) (b) (i) or sub-sub-paragraph 221yhj (1) (b) (ii) (b), as the case may be, in relation to the principal amount or the part of the principal amount, as the case may be, shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the principal amount or the part of the principal amount, as the case may be, bears to the amount of the judgment debt.

“(2) In sub-section (1), ‘principal amount’ means—

(a) an amount of the kind referred to in sub-section 221yhh (1) as the undeducted amount;


 

(b) an amount of the kind referred to in sub-section 221yhj (1) as the principal amount; or

(c) an amount of the kind referred to in sub-paragraph 221yhj (1) (b) (ii) as the relevant penalty amount.

Penalties to be alternative to prosecution for certain offences

“221yhlb. (1) Where—

(a) but for this sub-section, an amount is payable, by way of penalty, by a person to the Commissioner under this Division by reason of an act or omission of the person; and

(b) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the amount is not payable unless and until the prosecution is withdrawn.

“(2) Where—

(a) a person is liable to pay, by way of penalty, an amount (in this sub-section referred to as the ‘penalty amount’) to the Commissioner under this Division by reason of an act or omission of the person;

(b) an amount (in this sub-section referred to as the ‘relevant amount’) is paid, or applied by the Commissioner, in total or partial discharge of the liability; and

(c) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the relevant amount shall be refunded to the person or applied by the Commissioner in total or partial discharge of a tax liability of the person, but, if the prosecution is withdrawn, the person shall again become liable to pay the penalty amount.

“(3) In sub-section (2), ‘tax liability’ means tax liability as defined in section 2 of the Taxation Administration Act 1953”.

Repeal of section 221yho

141. Section 221yho of the Principal Act is repealed.

Deductions to be forwarded to Commissioner, &c.

142. Section 221yn of the Principal Act is amended—

(a) by omitting from sub-section (4) “under this section” and substituting “under sub-section (1) (in this sub-section referred to as the ‘principal amount’)”;

(b) by omitting from paragraph (4) (a) “that amount” and substituting “the principal amount”;

(c) by inserting in paragraph (4) (b) “, by way of penalty,” after “Commissioner”;

(d) by omitting from paragraph (4) (b) “the amount unpaid” and substituting “so much of the principal amount as remains unpaid”;


 

(e) by omitting from sub-section (5) “payable to the Commissioner” (first occurring) and substituting “(in this sub-section referred to as the ‘principal amount’) payable to the Commissioner under sub-section (1)”;

(f) by omitting from sub-paragraphs (5) (a) (i) and (b) (i) “the amount payable to the Commissioner” and substituting “the principal amount”; and

(g) by adding at the end thereof the following sub-sections:

“(6) Where judgment is given by, or entered in, a court for the payment of—

(a) the whole or a part of a principal amount; or

(b) an amount that includes the whole or a part of a principal amount,

then—

(c) the principal amount shall not be taken, for the purposes of paragraph (4) (b), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the amount that would, but for this paragraph, be payable by virtue of paragraph (4) (b) in relation to the principal amount or the part of the principal amount, as the case may be, shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the principal amount or the part of the principal amount, as the case may be, bears to the amount of the judgment debt.

“(7) In sub-section (6), ‘principal amount’ means an amount payable to the Commissioner under sub-section (1).

“(8) Where—

(a) but for this sub-section, an amount is payable, by way of penalty, by a person to the Commissioner under sub-section (4) by reason of an act or omission of the person; and

(b) a prosecution is instituted against the person for an offence against sub-section (2) constituted by the act or omission,

the amount is not payable unless and until the prosecution is withdrawn.

“(9) Where—

(a) a person is liable to pay, by way of penalty, an amount (in this sub-section referred to as the ‘penalty amount’) to the


 

Commissioner under sub-section (4) by reason of an act or omission of the person;

(b) an amount (in this sub-section referred to as the ‘relevant amount’) is paid, or applied by the Commissioner, in total or partial discharge of the liability; and

(c) a prosecution is instituted against the person for an offence against sub-section (2) constituted by the act or omission,

the relevant amount shall be refunded to the person or applied by the Commissioner in total or partial discharge of a tax liability of the person, but, if the prosecution is withdrawn, the person shall again become liable to pay the penalty amount.

“(10) In this section, ‘tax liability’ means a tax liability as defined in section 2 of the Taxation Administration Act 1953..

Repeal of section 221yw

143. Section 221yw of the Principal Act is repealed.

Deductions to be forwarded to Commissioner, &c.

144. Section 221zc of the Principal Act is amended—

(a) by omitting from sub-section (4) “under this section” and substituting “under sub-section (1) (in this sub-section referred to as the ‘principal amount’)”;

(b) by omitting from paragraph (4) (a) “that amount” and substituting “the principal amount”;

(c) by inserting in paragraph (4) (b) “, by way of penalty,” after “Commissioner”;

(d) by omitting from paragraph (4) (b) “the amount unpaid” and substituting “so much of the principal amount as remains unpaid”;

(e) by omitting from sub-section (5) “payable to the Commissioner” (first occurring) and substituting “(in this sub-section referred to as the ‘principal amount’) payable to the Commissioner under sub-section (1)”; and

(f) by omitting from sub-paragraphs (5) (a) (i) and (b) (i) “the amount payable to the Commissioner” and substituting “the principal amount”.

Liability of person who fails to make deduction, &c.

145. Section 221zd of the Principal Act is amended—

(a) by inserting in sub-section (1) “, by way of penalty” after “Commissioner” (first occurring);

(b) by inserting in paragraph (1) (a) “(in this sub-section referred to as the ‘principal amount’)” after “amount” (first occurring);

(c) by omitting from paragraph (1) (b) “10%” and substituting “20%”;

(d) by omitting from paragraph (1) (b) “the amount of that unpaid mining withholding tax, calculated in respect of the period


 

commencing on” and substituting “so much of the principal amount as remains unpaid, computed from”; and

(e) by omitting from paragraph (1) (b) all the words after “made”.

146. After section 221zd of the Principal Act the following sections are inserted:

Reduction of late payment penalty where judgment debt carries interest

“221zda. (1) Where judgment is given by, or entered in, a court for the payment of—

(a) the whole or a part of a principal amount; or

(b) an amount that includes the whole or a part of a principal amount,

then—

(c) the principal amount or the part of the principal amount, as the case may be, shall not be taken, for the purposes of paragraph 221zc (4) (b) or 221zd (1) (b), as the case requires, to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the amount that would, but for this paragraph, be payable by virtue of paragraph 221zc (4) (b) or 221zd (1) (b), as the case may be, in relation to the principal amount or the part of the principal amount, as the case may be, shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the principal amount or the part of the principal amount, as the case may be, bears to the amount of the judgment debt.

“(2) In sub-section (1), ‘principal amount’ means—

(a) an amount of the kind referred to in sub-section 221zc (4) as the principal amount; or

(b) an amount of the kind referred to in sub-section 221zd (1) as the principal amount.

Penalties to be alternative to prosecution for certain offences

“221zdb. (1) Where—

(a) but for this sub-section, an amount is payable, by way of a penalty, by a person to the Commissioner under this Division by reason of an act or omission of the person; and

(b) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the amount is not payable unless and until the prosecution is withdrawn.


 

“(2) Where—

(a) a person is liable to pay, by way of penalty, an amount (in this sub-section referred to as the ‘penalty amount’) to the Commissioner under this Division by reason of an act or omission of the person;

(b) an amount (in this sub-section referred to as the ‘relevant amount’) is paid, or applied by the Commissioner, in total or partial discharge of the liability; and

(c) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the relevant amount shall be refunded to the person or applied by the Commissioner in total or partial discharge of a tax liability of the person, but, if the prosecution is withdrawn, the person shall again become liable to pay the penalty amount.

“(3) In sub-section (2), ‘tax liability’ means tax liability as defined in section 2 of the Taxation Administration Act 1953”.

Repeal of section 221zj

147. Section 221zj of the Principal Act is repealed.

Liability of person who fails to make deduction

148. Section 221zo of the Principal Act is amended—

(a) by inserting in sub-section (1) “refuses or” before “fails”;

(b) by inserting in sub-section (1) “, by way of penalty” after “Commissioner”;

(c) by inserting in paragraph (1) (a) “refused or” before “failed”;

(d) by omitting from paragraph (1) “10%” and substituting “20%”; and

(e) by inserting in sub-section (2) “refused or” before “failed”.

Liability of person who fails to remit deduction

149. Section 221zp of the Principal Act is amended—

(a) by inserting “(in this section referred to as the ‘principal amount’)” after “paragraph 221zn (1) (c)”;

(b) by omitting from paragraph (a) “that amount” and substituting “the principal amount”;

(c) by inserting in paragraph (b) “, by way of penalty,” after “Commissioner”; and

(d) by omitting from paragraph (b) “the amount unpaid” and substituting “so much of the principal amount as remains unpaid”.


 

150. After section 221zq of the Principal Act the following sections are inserted:

Reduction of late payment penalty where judgment debt carries interest

“221zqa. (1) Where judgment is given by, or entered in, a court for the payment of—

(a) the whole or a part of a principal amount; or

(b) an amount that includes the whole or a part of a principal amount,

then—

(c) the principal amount shall not be taken, for the purposes of paragraph 221zo (1) (b) or 221zp (b), as the case requires, to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the amount that would, but for this paragraph, be payable by virtue of paragraph 221zo (1) (b) or 221zp (b), as the case may be, in relation to the principal amount or the part of the principal amount, as the case may be, shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the principal amount or the part of the principal amount, as the case may be, bears to the amount of the judgment debt.

“(2) In sub-section (1), ‘principal amount’ means—

(a) an amount of the kind referred to in sub-section 221zo (1) as the undeducted amount; or

(b) an amount of the kind referred to in section 221zp as the principal amount.

Penalties to be alternative to prosecution for certain offences

“221zqb. (1) Where—

(a) but for this sub-section, an amount is payable, by way of a penalty, by a person to the Commissioner under this Division by reason of an act or omission of the person; and

(b) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the amount is not payable unless and until the prosecution is withdrawn.

“(2) Where—

(a) a person is liable to pay, by way of penalty, an amount (in this sub-section referred to as the ‘penalty amount’) to the Commissioner under this Division by reason of an act or omission of the person;


 

(b) an amount (in this sub-section referred to as the ‘relevant amount’) is paid, or applied by the Commissioner, in total or partial discharge of the liability; and

(c) a prosecution is instituted against the person for an offence against this Division constituted by the act or omission,

the relevant amount shall be refunded to the person or applied by the Commissioner in total or partial discharge of a tax liability of the person, but, if the prosecution is withdrawn, the person shall again become liable to pay the penalty amount.

“(3) In sub-section (2), ‘tax liability’ means tax liability as defined in section 2 of the Taxation Administration Act 1953..

Repeal of section 221zv

151. Section 221zv of the Principal Act is repealed.

152. Part VII of the Principal Act is repealed and the following Part is substituted:

“PART VII—PENALTY TAX

Penalty for failure to furnish return

“222. (1) Where a taxpayer refuses or fails to furnish, when and as required under or pursuant to this Act or the regulations to do so, a return, or any information, relating to a year of income, being a return relating to or information relating to, or to the affairs of, the taxpayer, the taxpayer is liable to pay, by way of penalty, additional tax equal to double the amount of tax payable by the taxpayer in respect of the year of income.

“(2) Where, but for this sub-section, an amount of additional tax, being an amount less than $20, is payable by a taxpayer under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional tax shall be taken to be $20.

Penalty for false or misleading statements

“223. (1) Where—

(a) a taxpayer—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular; and


 

(b) the tax properly payable by the taxpayer exceeds the tax that would have been payable by the taxpayer if it were assessed on the basis that the statement were not false or misleading, as the case may be,

the taxpayer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess.

“(2) Where—

(a) a partner in a partnership (in this sub-section referred to as the ‘defaulting partner’)—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular,

being a statement relating to, or to the affairs of, the partnership; and

(b) either or both of the following sub-paragraphs apply:

(i) the tax properly payable by the defaulting partner exceeds the tax that would have been payable by the defaulting partner if it were assessed on the basis that the statement were not false or misleading, as the case may be;

(ii) the tax properly payable by any other partner in the partnership (in this sub-section referred to as the ‘other partner’) exceeds the amount that would have been payable by the other partner if it were assessed on the basis that the statement were not false or misleading, as the case may be,

then—

(c) in a case to which sub-paragraph (b) (ii) does not apply—the defaulting partner is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in sub-paragraph (b) (i);

(d) in a case to which sub-paragraph (b) (i) does not apply—the defaulting partner is liable to pay, by way of penalty, additional tax equal to double the amount of the excess referred to in sub-paragraph (b) (ii); and

(e) in a case to which sub-paragraphs (b) (i) and (ii) both apply—the defaulting partner is liable to pay, by way of penalty, additional tax equal to the sum of—

(i) double the amount of the excess referred to in sub-paragraph (b) (i); and

(ii) double the amount of the excess referred to in sub-paragraph (b) (ii).


 

“(3) Where, but for this sub-section, a person is liable to pay both—

(a) an amount of additional tax under sub-section (1) in respect of a statement relating to a matter; and

(b) an amount of additional tax under sub-section (2) in respect of a statement (whether or not the same statement) relating to the same matter,

the person is liable to pay only whichever of those amounts the Commissioner determines.

“(4) Where—

(a) a trustee of a trust estate—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or thing without which the statement is misleading in a material particular,

being a statement relating to, or to the affairs of, the trust estate; and

(b) the tax properly payable by a person who is or has been a beneficiary of the trust estate exceeds the tax that would have been payable by the last-mentioned person if it were assessed on the basis that the statement were not false or misleading, as the case may be,

the trustee is personally liable to pay, by way of penalty, additional tax equal to double the amount of the excess.

“(5) Sub-section (4) shall not be taken as implying that a reference in any other provision of this Part to a taxpayer does not include a reference to a taxpayer in the capacity of a trustee.

“(6) Where, but for this sub-section, an amount of additional tax, being an amount less than $20, is payable by a person under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional tax shall be taken to be $20.

“(7) Where a person omits from a return furnished under or pursuant to this Act or the regulations, being a return of income derived by the person, a partnership or a trust estate during a period, any assessable income derived by the person, the partnership or the trust estate, as the case may be, during the period, the person shall, for the purposes of this section, be taken to have made a statement in the return to the effect that the person, the partnership or the trust estate, as the case requires, did not derive the assessable income during the period.

“(8) A reference in this section to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data


 

processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to paragraph 264 (1) (b).

“(9) A reference in this section to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

“(10) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.

Penalty tax where certain anti-avoidance provisions apply

“224. (1) Where—

(a) for the purpose of making an assessment or arising out of the consideration of an objection, the Commissioner has calculated the tax that is assessable to a taxpayer in relation to a year of income;

(b) a step (in this sub-section referred to as the ‘relevant step’) in the calculation of the tax consisted of—

(i) an amount being included in the assessable income of the taxpayer; or

(ii) a deduction or rebate not being allowable, in whole or in part, to the taxpayer;

(c) the relevant step was dependent on, or involved, any one or more of the following, namely:


 

(i) the formation by the Commissioner of, or the refusal or failure of the Commissioner to form, an opinion that relates to a tax avoidance scheme;

(ii) the attainment by the Commissioner of, or the refusal or failure by the Commissioner to attain, a state of mind that relates to a tax avoidance scheme;

(iii) the making by the Commissioner of, or the refusal or failure by the Commissioner to make, a determination that relates to a tax avoidance scheme;

(iv) the exercise by the Commissioner of, or the refusal or failure by the Commissioner to exercise, a power to treat a matter or thing that relates to a tax avoidance scheme in a particular way,

being an opinion, state of mind, determination or power under, or referred to in, a provision of this Act (other than a provision of Division 13 of Part III or Part IVa); and

(d) either of the following sub-paragraphs apply:

(i) in a case to which sub-paragraph (b) (i) applies—the taxpayer did not include in the taxpayer’s return for the year of income or the objection, as the case may be, the amount referred to in that sub-paragraph as part of the taxpayer’s assessable income; or

(ii) in a case to which sub-paragraph (b) (ii) applies—the taxpayer claimed or included in the taxpayer’s return for the year of income or the objection, as the case may be, the deduction or rebate or the part of the deduction or rebate, as the case may be, referred to in that sub-paragraph as, or as part of, an allowable deduction or rebate, as the case may be,

the taxpayer is liable to pay, by way of penalty, additional tax equal to—

(e) in a case to which sub-paragraph (b) (i) applies—double the difference between the tax properly payable by the taxpayer and the tax that would have been payable by the taxpayer if it were assessed on the basis that the taxpayer’s assessable income were reduced by the amount referred to in sub-paragraph (b) (i) or the part of that amount that the taxpayer did not include in the taxpayer’s return for the year of income or the taxpayer’s objection, as the case may be, as part of the taxpayer’s assessable income, as the case may be; or

(f) in a case to which sub-paragraph (b) (ii) applies—double the difference between the tax properly payable by the taxpayer and the tax that would have been payable by the taxpayer if it were assessed on the basis that the taxpayer’s allowable deductions or rebates, as the case may be, were increased by the amount of the deduction or rebate or the part of the deduction or rebate, as the case may be, referred to in sub-paragraph (b) (ii) that the taxpayer claimed or included in the taxpayer’s return for the year of income or the taxpayer’s objection, as the case may be, as, or as part of, an allowable deduction or rebate, as the case may be.


 

“(2) In sub-section (1), ‘tax avoidance scheme’ means a scheme within the meaning of Part IVa that was entered into or carried out for the sole or dominant purpose of enabling a person to pay no tax or less tax.

Penalty tax where Division 13 of Part III applies

“225. (1) Where—

(a) for the purpose of making an assessment or arising out of the consideration of an objection, the Commissioner has calculated the tax that is assessable to a taxpayer in relation to a year of income;

(b) in calculating the tax assessable to the taxpayer, a prescribed provision was, or prescribed provisions were, applied; and

(c) either of the following sub-paragraphs apply:

(i) no tax would have been assessable to the taxpayer in relation to the year of income if—

(a) the prescribed provision or prescribed provisions, as the case may be, had not been applied; and

(b) the tax had been assessed on the basis that the particulars contained in the return of the taxpayer for the year of income or in the objection, as the case may be, were correct in so far as they were relevant to the operation of the prescribed provision or prescribed provisions, as the case may be;

(ii) the amount of tax (in this sub-section referred to as the ‘amount of claimed tax’) that would have been assessable to the taxpayer in relation to the year of income if—

(a) the prescribed provision or prescribed provisions, as the case may be, had not been applied; and

(b) the tax had been assessed on the basis that the particulars contained in the return of the taxpayer for the year of income or the objection, as the case may be, were correct in so far as they were relevant to the operation of the prescribed provision or prescribed provisions, as the case may be,

is less than the amount of tax referred to in paragraph (a),

the taxpayer is liable to pay, by way of penalty—

(d) in a case where—

(i) the prescribed provision or prescribed provisions, as the case may be, were applied in relation to a scheme within the meaning of Part IVa; and

(ii) the scheme was entered into or carried out for the sole or dominant purpose of enabling a person to pay no tax or less tax—

additional tax equal to—

(iii) in a case to which sub-paragraph (c) (i) applies—double the amount of the tax referred to in paragraph (a); or


 

(iv) in a case to which sub-paragraph (c) (ii) applies—double the amount by which the amount of the tax referred to in paragraph (a) exceeds the amount of claimed tax; or

(e) in any other case—additional tax, in respect of the period commencing on the last day allowed to the taxpayer for furnishing the taxpayer’s return of income for the year of income and ending on the day on which the assessment is made or a decision is made on the objection, as the case may be, at the rate of 25% per annum of—

(i) in a case to which sub-paragraph (c) (i) applies—the amount of the tax referred to in paragraph (a); or

(ii) in a case to which sub-paragraph (c) (ii) applies—the amount by which the amount of the tax referred to in paragraph (a) exceeds the amount of claimed tax.

“(2) Where—

(a) for the purpose of making an assessment or arising out of the consideration of an objection, the Commissioner has calculated the tax that is assessable to a taxpayer in relation to a year of income; and

(b) in calculating the tax assessable to the taxpayer, a prescribed provision was not applied in a particular case by reason of the Income Tax (International Agreements) Act 1953,

the Commissioner shall determine the following amounts:

(c) the amount (if any) of additional tax that, but for sub-section (3) and the Income Tax (International Agreements) Act 1953, the taxpayer would have been liable to pay in relation to the year of income under sub-section (1);

(d) the amount (if any) of additional tax that the taxpayer would have been liable to pay in relation to the year of income under sub-section (1) if that sub-section were applied on the basis that a reference in that sub-section to the application of a prescribed provision included a reference to the application of a provision of the Income Tax (International Agreements) Act 1953 by reason of the application of which a prescribed provision was not applied in a particular case.

“(3) Where the Commissioner has determined an amount or amounts under sub-section (2) in relation to a taxpayer in relation to a year of income, the taxpayer is liable to pay, by way of penalty, additional tax in relation to the year of income equal to that amount or the lesser of those amounts, as the case may be, and, where the taxpayer is liable to pay additional tax under this sub-section in relation to the year of income, the taxpayer is not liable to pay additional tax under sub-section (1) in relation to the year of income.

“(4) In sub-sections (1) and (2), ‘prescribed provision’ means section 136ad or 136ae.

“(5) In the application of sub-sections (1) and (2), the possibility that section 31c, Subdivision C of Division 2 of Part III or Part IVa would have applied in a particular case in which it did not apply shall be disregarded.


 

Penalty tax where Part IVa applies

“226. Where—

(a) for the purpose of making an assessment or arising out of the consideration of an objection, the Commissioner has calculated the tax that is assessable to a taxpayer in relation to a year of income;

(b) in calculating the tax assessable to the taxpayer, a determination or determinations made by the Commissioner under sub-section 177f (1) was or were taken into account; and

(c) either of the following sub-paragraphs apply:

(i) no tax would have been assessable to the taxpayer in relation to the year of income if no determination had been made under sub-section 177f (1) in relation to the taxpayer in relation to the year of income;

(ii) the amount of tax (in this section referred to as the ‘amount of claimed tax’) that would, but for this section, have been assessable to the taxpayer in relation to the year of income if no determination had been made under sub-section 177f (1) in relation to the taxpayer in relation to the year of income is less than the amount of tax referred to in paragraph (a),

the taxpayer is liable to pay, by way of penalty, additional tax equal to—

(d) in a case to which sub-paragraph (c) (i) applies—double the amount of the tax referred to in paragraph (a); or

(e) in a case to which sub-paragraph (c) (ii) applies—double the amount by which the amount of the tax referred to in paragraph (a) exceeds the amount of claimed tax.

Assessment of additional tax

“227. (1) The Commissioner shall make an assessment of the additional tax payable by a person under a provision of this Part.

“(2) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of a person under sub-section (1) from being incorporated in notice of any other assessment made in respect of the person under this Act.

“(3) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional tax payable by a person under a provision of this Part, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (1) of the additional tax.

Return to be incorporated in objection for certain purposes

“228. Where—

(a) arising out of the consideration of an objection, the Commissioner has calculated the tax that is assessable to a taxpayer in relation to a year of income; and


 

(b) the taxpayer furnished a return for the year of income,

then, for the purposes of the application of paragraphs 224 (1) (d), (e) and (f) and 225 (1) (c) to a calculation of the kind referred to in paragraph (a) of this section—

(c) subject to paragraph (d), the return shall be taken to be incorporated in, and read as one with, the objection; and

(d) if the return is inconsistent with the objection, the objection shall, to the extent of the inconsistency, prevail over the return.”.

Cancellation or suspension of registration of tax agent

153. Section 251k of the Principal Act is amended—

(a) by inserting after sub-section (1) the following sub-sections:

“(1a) Where a Board is satisfied that—

(a) a tax agent who is an individual;

(b) a tax agent that is a company; or

(c) in the case of a tax agent that is a partnership or a company—a nominee of the tax agent,

has been convicted of—

(d) an offence against section 8p, 8t or 8u of the Taxation Administration Act 1953; or

(e) an offence against—

(i) section 6, 7 or 7a of the Crimes Act 1914; or

(ii) sub-section 86 (1) of that Act by virtue of paragraph (a) of that sub-section,

being an offence that relates to an offence of the kind referred to in paragraph (d) of this sub-section,

the Board shall—

(f) in a case to which paragraph (g) does not apply—

(i) suspend the registration of the tax agent for such period, not being less than 3 months, as it thinks fit; or

(ii) cancel the registration of the tax agent; or

(g) if the registration of the tax agent is already suspended—

(i) suspend the registration of the tax agent for such further period, not being less than 3 months, as it thinks fit, being a period commencing at the end of the period for which the registration of the tax agent is already suspended; or

(ii) cancel the registration of the tax agent.

“(1b) Nothing in sub-section (1a) shall be taken to restrict or limit, by implication, the generality of sub-section (2).”;

(b) by inserting in paragraph (2a) (b) “refused or” before “failed”;

(c) by inserting in sub-section (5) “suspension or” after “review of the”;

(d) by omitting from sub-section (5) all the words after “tax agent”; and


 

(e) by adding at the end thereof the following sub-sections:

“(9) An individual, partnership, or company whose registration as a tax agent is suspended shall, except for the purposes of sub-section 251j (10), (11) or (12), section 251ja, sub-section (1a), (2), (2a), (3), (4), (7) or (8) of this section or section 251q, be deemed not to be registered as a tax agent while that registration remains suspended.

“(10) A reference in sub-section (1a) to a conviction of a tax agent or a nominee of a tax agent of an offence includes a reference to the making of an order under section 19b of the Crimes Act 1914 in relation to the tax agent or nominee, as the case may be, in respect of the offence.”.

Unregistered tax agents not to charge fees

154. Section 251l of the Principal Act is amended by omitting sub-section (6).

Repeal of section 251v

155. Section 251v of the Principal Act is repealed.

Public officer of company

156. Section 252 of the Principal Act is amended—

(a) by omitting from sub-section (1) “being a person residing in Australia and”;

(b) by omitting from sub-section (1) “attorney. With” and substituting “attorney, and with”;

(c) by omitting paragraph (1) (d) and substituting the following paragraph:

“(d) The company shall duly appoint a public officer when and as often as such an appointment becomes necessary.”;

(d) by inserting in paragraph (1) (g) “refusal or” before “failure”; and

(e) by adding at the end thereof the following sub-sections:

“(3) A person is not capable of being a public officer of a company at a particular time unless the person—

(a) is a natural person who has attained the age of 18 years;

(b) is ordinarily resident—

(i) in the case of a company that—

(a) at that time carries on business solely or principally in a prescribed Territory (in this paragraph referred to as the ‘relevant prescribed Territory’); or

(b) at that time does not carry on business solely or principally in a prescribed Territory, but derived not less than 50% of its income from sources in Australia and the prescribed Territories from


 

sources in a particular prescribed Territory (in this paragraph referred to as the ‘relevant prescribed Territory’) during the year immediately preceding that time,

in Australia or the relevant prescribed Territory; or

(ii) in any other case—in Australia; and

(c) is capable of understanding the nature of the person’s appointment as the public officer of the company.

“(4) A company that contravenes paragraph (1) (d) is, in respect of each day on which it contravenes that paragraph (including the day of a conviction of an offence against this sub-section or any subsequent day), guilty of an offence punishable on conviction by a fine not exceeding $50.

“(5) A reference in sub-section (1) (other than in paragraph (a)) to this Act or the regulations includes a reference to Part III of the Taxation Administration Act 1953 to the extent to which that Part of that Act relates to this Act or the regulations.

“(6) In sub-section (3)—

‘Australia’ does not include a prescribed Territory;

‘prescribed Territory’ means an external Territory referred to in sub-section 7a (2).”.

Public officer of trust estate

157. Section 252a of the Principal Act is amended—

(a) by omitting from paragraph (1) (d) “, being a public officer who is a resident”;

(b) by inserting after sub-section (2) the following sub-section:

“(2a) A person is not capable of being a public officer of a trust estate at a particular time unless the person—

(a) is a natural person who has attained the age of 18 years;

(b) is ordinarily resident—

(i) in the case of a trust estate that—

(a) at that time carries on its business solely or principally in a prescribed Territory (in this paragraph referred to as the ‘relevant prescribed Territory’); or

(b) at that time does not carry on its business solely or principally in a prescribed Territory, but derived not less than 50% of its income from sources in Australia and the prescribed Territories from sources in a particular prescribed Territory (in this paragraph referred


 

to as the ‘relevant prescribed Territory’) during the year immediately preceding that time,

in Australia or the relevant prescribed Territory; or

(ii) in any other case—in Australia; and

(c) is capable of understanding the nature of the person’s appointment as the public officer of the trust estate.”; and

(c) by adding at the end thereof the following sub-sections:

“(14) A reference in this section to this Act or the regulations includes a reference to Part III of the Taxation Administration Act 1953 to the extent to which that Part of that Act relates to this Act or the regulations.

“(15) In sub-section (2a)—

‘Australia’ does not include a prescribed Territory;

‘prescribed Territory’ means an external Territory referred to in sub-section 7a (2).”.

Agents and trustees

158. Section 254 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under section 207 or Part VII.”.

Persons in receipt or control of money from non-resident

159. Section 255 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(4) In this section, ‘tax’ includes additional tax under section 207 or Part VII.”.

Recovery of tax paid on behalf of another person

160. Section 258 of the Principal Act is amended—

(a) by omitting “(including income tax, and tax of a similar nature to provisional tax, under a State income tax law)”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under section 207 or Part VII.”.

Contribution from joint taxpayers

161. Section 259 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-section:

“(2) In sub-section (1), ‘tax’ includes additional tax under section 207 or Part VII.”.


 

Release of taxpayers from liability in cases of hardship

162. Section 265 of the Principal Act is amended by omitting sub-section (12) and substituting the following sub-section:

“(12) In this section, ‘tax’ includes additional tax under section 207 or Part VII.”.

Further amendments relating to offences

163. The Principal Act is amended as set out in Schedule 6.

Formal amendments

164. The Principal Act is amended as set out in Schedule 7.

Application of amendments

165. (1) In this section, “amended Act” means the Principal Act as amended by this Act.

(2) Sub-section 51 (4) of the amended Act applies in relation to the year of income that commenced on 1 July 1984 and all subsequent years of income.

(3) It is hereby declared that the amendment of section 51 of the Principal Act made by this Act is enacted for the avoidance of doubt and, in particular, shall not be taken as implying that a deduction, being a deduction in respect of an amount of a kind referred to in sub-section 51 (4) of the amended Act, is or was allowable under section 51 of the Principal Act in relation to a year of income earlier than the year of income that commenced on 1 July 1984.

(4) Sub-sections 128c (4a) and 207 (1b), sections 221na and 221yhla, sub-sections 221yn (6) and (7) and sections 221zda and 221zqa of the amended Act apply in relation to judgments given or entered after the commencement of this section.

(5) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to tax or income tax included a reference to additional tax, the amendments made by this Act shall be disregarded.

(6) Notwithstanding the amendment of section 193 of the Principal Act made by this Act, sub-sections 193 (2) and (3) of the Principal Act continue to apply, after the commencement of this section, in relation to a decision made by the Commissioner under sub-section 226 (3) of the Principal Act (including that sub-section as continued to be applied by this section), as if that amendment had not been made.

(7) Section 216 of the amended Act applies in relation to persons who died before, and persons who die after, the commencement of this section.

(8) An assessment made under sub-section 217 (3) of the Principal Act before the commencement of this section has effect, after that commencement, as if it were an assessment made under sub-section 216 (2) of the amended Act.


 

(9) Sub-sections 221ae (1a) and (1b) of the amended Act apply in relation to the year of income that commenced on 1 July 1983 and all subsequent years of income.

(10) Sub-sections 221ag (5a), (7a) and (7b) of the amended Act apply in relation to an estimate made by a company under sub-section 221ag (1) of the amended Act after the commencement of this section.

(11) Notwithstanding the amendments of section 221f of the Principal Act made by this Act, sub-sections 221f (10) and (10a) of the Principal Act continue to apply, after the commencement of this section, in relation to an amount that was required by section 221f of the Principal Act to be paid to the Commissioner before that commencement, as if that amendment had not been made.

(12) Sub-section 221ydb (1) of the amended Act applies in relation to the year of income that commences on 1 July 1984 and all subsequent years of income.

(13) Notwithstanding the amendments of sections 221yhn, 221yr, 221ze and 221zr of the Principal Act made by this Act, and the repeal of sections 243 and 249 of the Principal Act effected by this Act—

(a) the provisions of section 243 continue to apply, after the commencement of this section, in relation to proceedings of a kind referred to in sub-section 221yhn (2), 221yr (2), 221ze (2) or 221zr (2) of the Principal Act instituted before that commencement; and

(b) the provisions of section 249 of the Principal Act continue to apply, after that commencement, in relation to an order of a kind referred to in sub-section 221yhn (3), 221yr (3), 221ze (3) or 221zr (3) of the Principal Act made before that commencement,

as if those amendments had not been made and that repeal had not been effected.

(14) Notwithstanding the repeal of sections 221n, 221yaa, 221yhv, 221yx, 221zk and 221zw, Part VII and section 251v of the Principal Act effected by this Act—

(a) section 221n of the Principal Act continues to apply, after the commencement of this section, in relation to a liability under sub-section 221n (1) of the Principal Act that accrued before that commencement;

(b) sections 221yaa, 221yhv, 221yx, 221zk, 221zw and 222, sub-sections 223 (2), 227 (3), 228 (2), 230 (2) and 231 (2) and sections 233 to 246 (inclusive), 249, 250 and 251 of the Principal Act continue to apply, after that commencement, in relation to offences against the Principal Act committed before that commencement;

(c) section 225 of the Principal Act continues to apply, after the commencement of this section, in relation to a person convicted,


 

whether before or after that commencement, of an offence against section 223 or 224 of the Principal Act;

(d) sub-sections 226 (3) and (4) of the Principal Act continue to apply, after that commencement, in relation to a liability for additional tax that accrued before that commencement; and

(e) sub-sections 251v (2), (3), (4) and (5) of the Principal Act continue to apply, after that commencement, in relation to a liability for additional medicare levy that accrued before that commencement,

as if that repeal had not been effected.

(15) Notwithstanding the amendment of section 251l of the Principal Act made by this Act, sub-section 251l (6) of the Principal Act continues to apply, after the commencement of this section, in relation to an offence against sub-section 251l (1) of the Principal Act committed before that commencement, as if that amendment had not been made.

(16) The amendments of sub-section 252 (1) of the Principal Act (other than the amendments of paragraphs (d) and (g)) made by this Act, and sub-sections 252 (3) and (6) of the amended Act, do not have effect in relation to a company during the period of 30 days immediately after the commencement of this section.

(17) The amendment of paragraph 252a (1) (d) of the Principal Act made by this Act, and sub-sections 252a (2a) and (15) of the amended Act, do not have effect in relation to a trust estate during the period of 30 days immediately after the commencement of this section.

(18) In determining whether, at a time before the commencement of this section, a person other than a natural person was capable of being a public officer of a company or a trust estate for the purposes of section 252 or 252a, as the case may be, of the Principal Act, the amendments made by this Act shall be disregarded.

(19) A reference in this section to a provision of the Principal Act, or of the amended Act, that is applied by sub-section 4 (1) of the Taxation (Unpaid Company Tax) Assessment Act 1982 includes a reference to that provision as so applied.

Default imprisonment—transitional provisions

166. (1) Notwithstanding the repeal of sections 247 and 248 of the Principal Act effected by this Act, those sections of the Principal Act continue to apply, after the commencement of this section, but subject to sub-section (3) of this section, in relation to a person in relation to whom an order was made by virtue of paragraph 247 (1) (a) of the Principal Act before the commencement of this section, as if those sections had not been repealed.

(2) Where a court had, before the commencement of this section, made an order (in sub-section (3) referred to as the “relevant order”) by virtue of paragraph 247 (1) (a) of the Principal Act committing a person (in this


 

sub-section and sub-section (3) referred to as the “relevant person”) to gaol until a pecuniary penalty was paid and—

(a) the person is imprisoned in pursuance of the order and has not been discharged under sub-section 248 (1) of the Principal Act by the gaoler of the gaol; or

(b) the person has not been imprisoned in pursuance of the order and the order has not been discharged by virtue of paragraph 247 (2) (b) of the Principal Act,

then—

(c) in a case to which paragraph (a) applies—the Commissioner, the relevant person or the gaoler of the gaol; or

(d) in a case to which paragraph (b) applies—the Commissioner or the relevant person,

may apply to the court under sub-section (3).

(3) Where the court, on application made in accordance with sub-section (2) of this section, is satisfied that it is reasonably likely that, if sections 247 and 248 of the Principal Act had not been applicable in relation to the pecuniary penalty and section 18a of the Crimes Act 1914 had been applicable in relation to the pecuniary penalty—

(a) the period of imprisonment (in this paragraph referred to as the “revised period of imprisonment”) that the relevant person would have been required to serve in default of payment of the pecuniary penalty is shorter than the period of imprisonment (in this paragraph referred to as the “original period of imprisonment”) that, but for this sub-section, the relevant person would have been required to serve in default of payment of the pecuniary penalty—the court shall vary the relevant order so that, in lieu of serving the original period of imprisonment in default of payment of the pecuniary penalty, the relevant person serves—

(i) in a case where the relevant person—

(a) is serving the original period of imprisonment; and

(b) the period (in this paragraph referred to as the “completed period of imprisonment”) of the original period of imprisonment that the relevant person has completed serving is not less than the revised period of imprisonment,

the completed period of imprisonment; or

(ii) in any other case—the revised period of imprisonment,

in default of payment of the pecuniary penalty;

(b) the relevant person would have been subject to a sentence or order other than a sentence or order of imprisonment (including a sentence or order known as a community service order, a work order or a sentence of weekend detention, or a similar sentence or order) in default of payment of the pecuniary penalty—the court shall—

(i) revoke the relevant order; and


 

(ii) pass such sentence, or make such order, in relation to the relevant person in relation to the pecuniary penalty as appears to it to be just and equitable; or

(c) the relevant person would not have been subject to any sentence or order in default of payment of the pecuniary penalty—the court shall revoke the relevant order.

(4) Notwithstanding anything contained in section 8 of the Acts Interpretation Act 1901—

(a) sections 247 and 248 of the Principal Act do not have effect, after the commencement of this section, except in relation to a person in relation to whom a court took action under sub-section 247 (1) of the Principal Act before the commencement of this section; and

(b) section 18a of the Crimes Act 1914 applies in relation to a person (not being a person referred to in paragraph (a) of this sub-section) who committed an offence against the Principal Act before the commencement of this section.

(5) A reference in this section to a provision of the Principal Act that is applied by sub-section 4 (1) of the Taxation (Unpaid Company Tax) Assessment Act 1982 includes a reference to that provision as so applied.

PART VIII—AMENDMENT OF THE INCOME TAX (INTERNATIONAL AGREEMENTS) ACT 1953

Principal Act

167. The Income Tax (International Agreements) Act 19537 is in this Part referred to as the Principal Act.

Collection of tax due to the United States of America

168. Section 20 of the Principal Act is amended by omitting sub-section (5) and substituting the following sub-section:

“(5) The Commissioner shall pay to the Government of the United States of America an amount equal to any amount paid or recovered by virtue of this section.”.

PART IX—AMENDMENT OF THE LOCAL GOVERNMENT (PERSONAL INCOME TAX SHARING) ACT 1976

Principal Act

169. The Local Government (Personal Income Tax Sharing) Act 19768 is in this Part referred to as the Principal Act.


 

Interpretation

170. Section 3 of the Principal Act is amended by omitting “or 226” from the definition of “personal income tax” in sub-section (1) and substituting “or Part VII”.

PART X—AMENDMENTS OF THE MIGRATION ACT 1958

Principal Act

171. The Migration Act 19589 is in this Part referred to as the Principal Act.

Interpretation

172. Section 5 of the Principal Act is amended by inserting after the definition of “crime” in sub-section (1) the following definition:

“‘departure prohibition order’ means an order under sub-section 14s (1) of the Taxation Administration Act 1953;”.

Offences in relation to entering into or remaining in Australia

173. Section 27 of the Principal Act is amended—

(a) by inserting after sub-section (2) the following sub-sections:

“(2aa) A non-citizen shall be taken not to contravene sub-section (1) by virtue of paragraph (ab) or (b) of that sub-section if, at the time the non-citizen becomes a prohibited non-citizen as mentioned in paragraph (1) (ab) or (b), as the case may be, a departure prohibition order is in force in respect of the non-citizen.

“(2ab) Where—

(a) at the time a non-citizen becomes a prohibited non-citizen as mentioned in paragraph (1) (ab) or (b), a departure prohibition order is in force in respect of the non-citizen;

(b) the departure prohibition order is revoked; and

(c) at the time of the revocation, the non-citizen is a prohibited non-citizen,

the non-citizen is guilty of an offence punishable upon conviction by a fine not exceeding $1,000 or imprisonment for a period not exceeding 6 months.”; and

(b) by adding at the end thereof the following sub-sections:

“(5) The Secretary to the Department or an officer of the Department authorized by the Secretary to give certificates under sub-section 31b (5) may issue a certificate certifying that, at a specified time or during a specified period, a departure prohibition order was not in force in respect of a specified person.

“(6) A document purporting to be a certificate issued under sub-section (5) shall be received in evidence in a court in proceedings for an offence against sub-section (1) by virtue of paragraph (ab) or


 

(b) of that sub-section without further proof and is prima facie evidence of the matters stated in the document.”.

Persons concerned in bringing non-citizens secretly into Australia or harbouring prohibited non-citizens

174. Section 30 of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(4) A reference in sub-section (2) to a prohibited non-citizen does not include a reference to a prohibited non-citizen in respect of whom a departure prohibition order is in force.

“(5) The Secretary to the Department or an officer of the Department authorized by the Secretary to give certificates under sub-section 31b (5) may issue a certificate certifying that, at a specified time or during a specified period, a departure prohibition order was not in force in respect of a specified person.

“(6) A document purporting to be a certificate issued under sub-section (5) shall be received in evidence in a court in proceedings for an offence against sub-section (2) without further proof and is prima facie evidence of the matters stated in the document.”.

Minister or authorized officer may require prohibited non-citizen to leave Australia

175. Section 31a of the Principal Act is amended—

(a) by omitting “requirement” and substituting “requirement unless, at the expiration of the time so specified, a departure prohibition order is in force in respect of the person”; and

(b) by adding at the end thereof the following sub-sections:

“(2) The Secretary to the Department or an officer of the Department authorized by the Secretary to give certificates under sub-section 31b (5) may issue a certificate certifying that, at a specified time or during a specified period, a departure prohibition order was not in force in respect of a specified person.

“(3) A document purporting to be a certificate issued under sub-section (2) shall be received in evidence in a court in proceedings for an offence against sub-section (1) without further proof and is prima facie evidence of the matters stated in the document.”.

PART XI—AMENDMENT OF THE NATIONAL CRIME AUTHORITY ACT 1984

Principal Act

176. The National Crime Authority Act 198410 is in this Part referred to as the Principal Act.


 

Schedule

177. The Schedule to the Principal Act is amended by omitting “Taxation Administration Act 1953, section 14f” and substituting “Taxation Administration Act 1953, section 3c”.

PART XII—AMENDMENTS OF THE PAY-ROLL TAX (TERRITORIES) ASSESSMENT ACT 1971

Principal Act

178. The Pay-roll Tax (Territories) Assessment Act 197111 is in this Part referred to as the Principal Act.

Repeal of sections 6 and 7

179. Sections 6 and 7 of the Principal Act are repealed.

Annual report

180. Section 7a of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Time for payment of tax

181. Section 22 of the Principal Act is amended by adding at the end thereof the following sub-sections:

“(3) Subject to sections 25 and 26—

(a) tax referred to in section 10 is due and payable at the expiration of the time referred to in sub-section (1) of this section; and

(b) tax referred to in section 15a is due and payable at the expiration of the time referred to in sub-section (2) of this section.

“(4) Subject to sections 25 and 26, additional tax under section 42 is due and payable on the date specified in the notice of assessment of the additional tax as the date on which the additional tax is due and payable.”.

Assessments

182. Section 23 of the Principal Act is amended by omitting sub-section (3).

183. Sections 24 and 25 of the Principal Act are repealed and the following sections are substituted:


 

Reduction of tax upon amendment of assessment

“24. (1) Where, by reason of an amendment of an assessment, an employer’s liability to tax is reduced, the amount by which the tax is so reduced shall be taken, for the purposes of section 27, never to have been payable.

“(2) In sub-section (1), ‘tax’ includes—

(a) a further tax; and

(b) additional tax under section 42.

Refunds

“25. (1) Where the Commissioner finds in any case that tax has been overpaid by an employer, the Commissioner shall—

(a) refund the amount of any tax overpaid; or

(b) apply the amount of any tax overpaid against any liability of the employer to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount not so applied.

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.

Employer leaving Australia

“25a. (1) Where the Commissioner has reason to believe that an employer may leave Australia before tax becomes due and payable by the employer, the tax is due and payable on such date as the Commissioner fixes and notifies to the employer.

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 42.”.

Time to pay—extensions and instalments

184. Section 26 of the Principal Act is amended—

(a) by omitting “or further tax” (wherever occurring); and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 42.”.

185. Section 27 of the Principal Act is repealed and the following section is substituted:

Penalty for unpaid tax

“27. (1) If any tax remains unpaid after the time when it became due and payable or would, but for section 26, have become due and payable, additional


 

tax is due and payable by way of penalty by the person liable to pay the tax at the rate of 20% per annum on the amount unpaid, computed from that time or, where, under section 26, the Commissioner has extended the time for payment of the tax or has permitted the payment of the tax to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the tax was originally due and payable.

“(2) Where additional tax is payable by a person under this section in relation to an amount of tax and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the tax were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the tax were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional tax or part of the additional tax; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or part of the additional tax,

the Commissioner may remit the additional tax or part of the additional tax.

“(3) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of tax; or

(b) an amount that includes an amount of tax,

then—

(c) the tax shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional tax that would, but for this paragraph, be payable under this section in relation to the tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the tax bears to the amount of the judgment debt.


 

“(4) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 42.”.

Recovery of tax

186. Section 28 of the Principal Act is amended—

(a) by omitting from sub-section (1) “or further tax”;

(b) by omitting from sub-section (1) “, or any additional tax,”;

(c) by omitting from sub-section (2) “, further tax or additional tax”; and

(d) by adding at the end thereof the following sub-section:

“(3) In this section, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Substituted service

187. Section 29 of the Principal Act is amended—

(a) by omitting “, further tax or additional tax”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Liquidator to give notice

188. Section 30 of the Principal Act is amended—

(a) by omitting sub-section (3c) and substituting the following sub-section:

“(3c) In sub-section (3), ‘prescribed tax’ means—

(a) tax within the meaning of sub-section 215 (2) of the Income Tax Assessment Act 1936;

(b) tax within the meaning of sub-section 32 (2) of the Sales Tax Assessment Act (No. 1) 1930 or of that sub-section as applied by Part V of the Sales Tax Assessment Act (No. 2) 1930, Part V of the Sales Tax Assessment Act (No. 3) 1930, Part V of the Sales Tax Assessment Act (No. 4) 1930, Part V of the Sales Tax Assessment Act (No. 5) 1930, Part V of the Sales Tax Assessment Act (No. 6) 1930, Part V of the Sales Tax Assessment Act (No. 7) 1930, Part V of the Sales Tax Assessment Act (No. 8) 1930 or Part V of the Sales Tax Assessment Act (No. 9) 1930;

(c) charge within the meaning of sub-section 27 (2) of the Tobacco Charges Assessment Act 1955; or

(d) tax within the meaning of the sub-section 47 (2) the Wool Tax (Administration) Act 1964”; and

(b) by omitting sub-section (8) and substituting the following sub-section:


 

“(8) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Agent for absentee principal in winding-up of business

189. Section 31 of the Principal Act is amended—

(a) by inserting in sub-section (2) “refuses or” before “fails” (wherever occurring);

(b) by omitting from sub-section (2) “, further tax or additional tax”; and

(c) by adding at the end thereof the following sub-section:

“(3) In this section, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Where tax not paid during lifetime

190. Section 32 of the Principal Act is amended—

(a) by omitting from sub-section (1) all the words after “apply” and substituting “where, at the time of an employer’s death, tax due by the employer has not been assessed or paid”;

(b) by omitting from sub-section (2) “against” and substituting “for the assessment and recovery of tax from”;

(c) by inserting in sub-section (3) “of the returns referred to in Part IV as have not been furnished by the deceased and such other” after “such”;

(d) by inserting after sub-section (3) the following sub-section:

“(3a) Where the trustees are unable or refuse or fail to furnish a return, the Commissioner may estimate and make an assessment of the amount of wages in respect of which, in the Commissioner’s judgment, tax ought to be paid.”;

(e) by omitting from sub-section (5) “, further tax or additional tax”; and

(f) by adding at the end thereof the following sub-section:

“(6) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Repeal of section 33

191. Section 33 of the Principal Act is repealed.

Where no administration of estate of deceased taxpayer

192. Section 34 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(8) In this section, ‘tax’ includes—

(a) further tax; and


 

(b) additional tax under section 42,

and in sub-section (5) ‘tax’ also includes additional tax under section 27.”.

Joint taxpayers

193. Section 35 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Commissioner may collect tax from person owing money to employer

194. Section 36 of the Principal Act is amended by omitting sub-section (4) and substituting the following sub-sections:

“(4) Where—

(a) money has been paid by a person to a building society in respect of the issue of shares in the capital of the society (not being shares listed for quotation on a Stock Exchange); and

(b) the money has not been repaid,

the money shall, for the purposes of this section, be taken—

(c) in a case where the money is repayable on demand—to be due by the building society to the person; or

(d) in any other case—to be money that may become due by the building society to the person.

“(5) Where, but for this sub-section, money is not due, or repayable on demand, to a person unless a condition is fulfilled, the money shall be taken, for the purposes of this section, to be due, or repayable on demand, as the case may be, to the person notwithstanding that the condition has not been fulfilled.

“(6) In this section—

‘building society’ means a society registered or incorporated as a building society, co-operative housing society or other similar society under the law in force in a State or Territory;

‘person’ includes a company, a partnership, the Commonwealth, a State, a Territory and any public authority (whether incorporated or unincorporated) of the Commonwealth or a State or Territory;

‘tax’ includes—

(a) further tax;

(b) additional tax under section 27 or 42;

(c) a judgment debt or costs in respect of—

(i) tax;

(ii) further tax; or

(iii) additional tax under section 27 or 42;


 

(d) any fine or costs imposed by a court in respect of—

(i) an offence against this Act or the regulations; or

(ii) any other taxation offence within the meaning of Part III of the Taxation Administration Act 1953 that relates to this Act or the regulations; and

(e) any amount ordered by a court, upon the conviction of a person for an offence of a kind referred to in paragraph (d), to be paid by the person to the Commissioner.”.

Pending appeal not to delay payment of tax

195. Section 41 of the Principal Act is amended by omitting sub-section (2) and substituting the following sub-sections:

“(2) Where, by reason of an alteration of a liability or assessment on an appeal or reference, an employer’s liability to tax is reduced, the amount by which the tax is so reduced, shall be taken, for the purposes of section 27, never to have been payable.

“(3) Where, by reason of an alteration of a liability or assessment on an appeal or reference, an employer’s liability to tax is increased, the amount of the increased tax is recoverable from the employer.

“(4) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

196. Parts VII and VIII of the Principal Act are repealed and the following Part is substituted:

“PART VII—PENALTY TAX

Penalty for failure to furnish return, &c.

“42. (1) Where an employer refuses or fails to furnish, when and as required under or pursuant to this Act or the regulations to do so, a return, or any information, relating to wages, the employer is liable to pay, by way of penalty, additional tax equal to double the amount of tax payable by the employer in respect of the wages.

“(2) Where—

(a) an employer—

(i) makes a statement to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, that is false or misleading in a material particular; or

(ii) omits from a statement made to a taxation officer, or to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations, any matter or


 

thing without which the statement is misleading in a material particular; and

(b) the tax properly payable by the employer exceeds the tax that would have been payable by the employer if it were assessed or determined on the basis that the statement were not false or misleading, as the case may be,

the employer is liable to pay, by way of penalty, additional tax equal to double the amount of the excess.

“(3) Where, but for this sub-section, an amount of additional tax, being an amount less than $20, is payable by an employer under this section in respect of an act or omission, then, by force of this sub-section, the amount of the additional tax shall be taken to be $20.

“(4) The Commissioner shall make an assessment of the additional tax payable by an employer under this section and shall, as soon as practicable after the assessment is made, cause notice in writing of the assessment to be given to the employer.

“(5) Nothing in this Act shall be taken to preclude notice of an assessment made in respect of an employer under sub-section (4) from being incorporated in notice of any other assessment made in respect of the employer under this Act.

“(6) The Commissioner may, in the Commissioner’s discretion, remit the whole or any part of the additional tax payable by an employer under this section, but, for the purposes of the application of sub-section 33 (1) of the Acts Interpretation Act 1901 to the power of remission conferred by this sub-section, nothing in this Act shall be taken to preclude the exercise of the power at a time before an assessment is made under sub-section (4) of the additional tax.

“(7) A reference in sub-section (2) to a statement made to a taxation officer is a reference to a statement made to a taxation officer orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes a statement—

(a) made in an application, certificate, declaration, notification, objection, return or other document made, given or furnished, or purporting to be made, given or furnished, under or pursuant to this Act or the regulations;

(b) made in answer to a question asked of a person under or pursuant to this Act or the regulations;

(c) made in any information furnished, or purporting to be furnished, under or pursuant to this Act or the regulations; or

(d) made in a document furnished to a taxation officer otherwise than under or pursuant to this Act or the regulations,

but does not include a statement made in a document produced pursuant to paragraph 20 (1) (c).


 

“(8) A reference in sub-section (2) to a statement made to a person other than a taxation officer for a purpose in connection with the operation of this Act or the regulations is a reference to such a statement made orally, in writing, in a data processing device or in any other form and, without limiting the generality of the foregoing, includes such a statement—

(a) made in an application, certificate, declaration, notification or other document made, given or furnished to the person;

(b) made in answer to a question asked by the person; or

(c) made in any information furnished to the person.

“(9) In this section—

‘data processing device’ means any article or material from which information is capable of being reproduced with or without the aid of any other article or device;

‘taxation officer’ means a person exercising powers, or performing functions under, pursuant to or in relation to this Act or the regulations.”.

Public officer of company

197. Section 64 of the Principal Act is amended by inserting after sub-section (1) the following sub-section:

“(1a) A person is not capable of being a public officer of a company unless the person—

(a) is a natural person who has attained the age of 18 years;

(b) is ordinarily resident in Australia; and

(c) is capable of understanding the nature of the person’s appointment as the public officer of the company.”.

Agents and trustees

198. Section 65 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Person in receipt or control of money for absentee

199. Section 66 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Release of employers in cases of hardship

200. Section 69 of the Principal Act is amended by adding at the end thereof the following sub-section:


 

“(11) In this section, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 27 or 42.”.

Regulations

201. Section 70 of the Principal Act is amended by omitting from sub-section (1a) “Minister for the Capital Territory” and substituting “Minister for Territories and Local Government”.

Further amendments relating to offences

202. The Principal Act is amended as set out in Schedule 8.

Application of amendments

203. (1) In this section, “amendment Act” means the Principal Act as amended by this Act.

(2) Notwithstanding the amendment of section 23 of the Principal Act made by this Act, the power of remission conferred by sub-section 23 (3) of the Principal Act continues to apply, after the commencement of this section, in relation to a liability for additional tax that accrued before that commencement, as if that amendment had not been made.

(3) In determining whether, at a time before the commencement of this section, a reference in a provision of the Principal Act to tax included a reference to additional tax or further tax, the amendments made by this Act shall be disregarded.

(4) Sub-section 27 (3) of the amended Act applies in relation to judgments given or entered after the commencement of this section.

(5) Section 32 of the amended Act applies in relation to employers who died before, and employers who die after, the commencement of this section.

(6) An assessment made under sub-section 33 (3) of the Principal Act before the commencement of this section has effect, after that commencement, as if it were an assessment made under sub-section 32 (3a) of the amended Act.

(7) Notwithstanding the repeal of section 27 and Parts VII and VIII of the Principal Act effected by this Act—

(a) sub-sections 27 (2) and 43 (2) and (3) of the Principal Act continue to apply, after the commencement of this section, in relation to a liability for additional tax that accrued before that commencement;

(b) sub-section 42 (3) of the Principal Act continues to apply, after that commencement, in relation to a person convicted, whether before or after that commencement, of an offence against sub-section 42 (1) of the Principal Act; and

(c) sections 46 and 47, 49 to 60 (inclusive) and 63 of the Principal Act continue to apply, after that commencement, in relation to offences against the Principal Act committed before that commencement,

as if that repeal had not been effected.


 

(8) Sub-section 64 (1a) of the amended Act does not have effect in relation to a company during the period of 30 days immediately after the commencement of this section.

(9) In determining whether, at a time before the commencement of this section, a person other than a natural person was capable of being a public officer of a company for the purposes of section 64 of the Principal Act, the amendments made by this Act shall be disregarded.

Default imprisonment—transitional provisions

204. (1) Notwithstanding the repeal of sections 61 and 62 of the Principal Act effected by this Act, those sections of the Principal Act continue to apply, after the commencement of this section, but subject to sub-section (3) of this section, in relation to a person in relation to whom an order was made by virtue of paragraph 61 (1) (a) of the Principal Act before the commencement of this section, as if those sections had not been repealed.

(2) Where a court had, before the commencement of this section, made an order (in sub-section (3) referred to as the “relevant order”) by virtue of paragraph 61 (1) (a) of the Principal Act committing a person (in this sub-section and sub-section (3) referred to as the “relevant person”) to gaol until a pecuniary penalty was paid and—

(a) the person is imprisoned in pursuance of the order and has not been discharged under sub-section 62 (1) of the Principal Act by the gaoler of the gaol; or

(b) the person has not been imprisoned in pursuance of the order and the order has not been discharged by virtue of paragraph 61 (2) (b) of the Principal Act,

then—

(c) in a case to which paragraph (a) applies—the Commissioner, the relevant person or the gaoler of the gaol; or

(d) in a case to which paragraph (b) applies—the Commissioner or the relevant person,

may apply to the court under sub-section (3).

(3) Where the court, on application made in accordance with sub-section (2) of this section, is satisfied that it is reasonably likely that, if sections 61 and 62 of the Principal Act had not been applicable in relation to the pecuniary penalty and section 18a of the Crimes Act 1914 had been applicable in relation to the pecuniary penalty—

(a) the period of imprisonment (in this paragraph referred to as the “revised period of imprisonment”) that the relevant person would have been required to serve in default of payment of the pecuniary penalty is shorter than the period of imprisonment (in this paragraph referred to as the “original period of imprisonment”) that, but for this sub-section, the relevant person would have been required to serve in default of payment of the pecuniary penalty—the court shall vary the relevant order so that, in lieu of serving the original period of


 

imprisonment in default of payment of the pecuniary penalty, the relevant person serves—

(i) in a case where the relevant person—

(a) is serving the original period of imprisonment; and

(b) the period (in this paragraph referred to as the “completed period of imprisonment”) of the original period of imprisonment that the relevant person has completed serving is not less than the revised period of imprisonment,

the completed period of imprisonment; or

(ii) in any other case—the revised period of imprisonment,

in default of payment of the pecuniary penalty;

(b) the relevant person would have been subject to a sentence or order other than a sentence or order of imprisonment (including a sentence or order known as a community service order, a work order or a sentence of weekend detention, or a similar sentence or order) in default of payment of the pecuniary penalty—the court shall—

(i) revoke the relevant order; and

(ii) pass such sentence, or make such order, in relation to the relevant person in relation to the pecuniary penalty as appears to it to be just and equitable; or

(c) the relevant person would not have been subject to any sentence or order in default of payment of the pecuniary penalty—the court shall revoke the relevant order.

(4) Notwithstanding anything contained in section 8 of the Acts Interpretation Act 1901—

(a) sections 61 and 62 of the Principal Act do not have effect, after the commencement of this section, except in relation to a person in relation to whom a court took action under sub-section 61 (1) of the Principal Act before the commencement of this section; and

(b) section 18a of the Crimes Act 1914 applies in relation to a person (not being a person referred to in paragraph (a) of this sub-section) who committed an offence against the Principal Act before the commencement of this section.

PART XIII—AMENDMENTS OF THE SALES TAX ASSESSMENT ACT (No. 1) 1930

Principal Act

205. The Sales Tax Assessment Act (No. 1) 193012 is in this Part referred to as the Principal Act.

Repeal of sections 5 and 8

206. Sections 5 and 8 of the Principal Act are repealed.


 

Annual report

207. Section 9 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(3) For the purposes of section 34c of the Acts Interpretation Act 1901, a report that is required by sub-section (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June.”.

Time for payment of tax

208. Section 24 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) Subject to sections 27 and 28, sales tax is due and payable at the end of the period of 21 days referred to in sub-section (1) of this section.”.

Further tax

209. Section 25 of the Principal Act is amended by omitting sub-section (2b).

210. After section 25 of the Principal Act the following section is inserted:

Reduction of tax upon amendment of assessment

“25a. (1) Where, by reason of an amendment of an assessment, a person’s liability to tax is reduced, the amount by which the tax is so reduced shall be taken, for the purposes of section 29, never to have been payable.

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under Part VIII.”.

Refunds of tax

211. Section 26 of the Principal Act is amended—

(a) by omitting sub-section (1) and substituting the following sub-sections:

“(1) Subject to sub-section (1a), where the Commissioner finds in any case that tax has been overpaid by a person, the Commissioner shall—

(a) refund the amount of any tax overpaid; or

(b) apply the amount of any tax overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount that is not so applied.

“(1a) Sub-section (1) does not apply in relation to any tax paid by a person unless the Commissioner is satisfied that the tax has not been passed on by the person to another person, or, if passed on to another person, has been refunded to the other person.”;

(b) by inserting in paragraph (3) (a) “refused or” before “failed”; and


 

(c) by adding at the end thereof the following sub-section:

“(7) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.

Taxpayer leaving Australia

212. Section 27 of the Principal Act is amended—

(a) by omitting “or further tax” (wherever occurring); and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under Part VIII.”.

Time to pay—extensions and instalments

213. Section 28 of the Principal Act is amended—

(a) by inserting in paragraph (a) “of tax” after “payment”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under Part VIII.”.

214. Section 29 of the Principal Act is repealed and the following section is substituted:

Penalty for unpaid tax

“29. (1) If any tax remains unpaid after the time when it became due and payable or would, but for section 28, have become due and payable, additional tax is due and payable by way of penalty by the person liable to pay the tax at the rate of 20% per annum on the amount unpaid, computed from that time or, where, under section 28, the Commissioner has extended the time for payment of the tax or has permitted the payment of the tax to be made by instalments, from such date as the Commissioner determines, not being a date prior to the date on which the tax was originally due and payable.

“(2) Where additional tax is payable by a person under this section in relation to an amount of tax and—

(a) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the tax were not due to, or caused directly or indirectly by, an act or omission of the person; and

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances;


 

(b) the Commissioner is satisfied that—

(i) the circumstances that contributed to the delay in payment of the tax were due to, or caused directly or indirectly by, an act or omission of the person;

(ii) the person has taken reasonable action to mitigate, or mitigate the effects of, those circumstances; and

(iii) having regard to the nature of those circumstances, it would be fair and reasonable to remit the additional tax or part of the additional tax; or

(c) the Commissioner is satisfied that there are special circumstances by reason of which it would be fair and reasonable to remit the additional tax or part of the additional tax,

the Commissioner may remit the additional tax or part of the additional tax.

“(3) Where judgment is given by, or entered in, a court for the payment of—

(a) an amount of tax; or

(b) an amount that includes an amount of tax,

then—

(c) the tax shall not be taken, for the purposes of sub-section (1), to have ceased to be due and payable by reason only of the giving or entering of the judgment; and

(d) if the judgment debt carries interest, the additional tax that would, but for this paragraph, be payable under this section in relation to the tax shall, by force of this paragraph, be reduced by—

(i) in a case to which paragraph (a) applies—the amount of the interest; or

(ii) in a case to which paragraph (b) applies—an amount that bears the same proportion to the amount of the interest as the amount of the tax bears to the amount of the judgment debt.

“(4) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under Part VIII.”.

Recovery of tax

215. Section 30 of the Principal Act is amended—

(a) by omitting from sub-section (2) “, including any additional tax,”; and

(b) by adding at the end thereof the following sub-section:

“(3) In this section, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.


 

Substituted service

216. Section 31 of the Principal Act is amended—

(a) by omitting “or additional tax,”; and

(b) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.

Liquidator to give notice

217. Section 32 of the Principal Act is amended—

(a) by omitting sub-section (2d) and substituting the following sub-section:

“(2d) In sub-section (2a), ‘prescribed tax’ means—

(a) tax within the meaning of sub-section 215 (2) of the Income Tax Assessment Act 1936;

(b) tax within the meaning of sub-section 30 (2) of the Pay-roll Tax (Territories) Assessment Act 1971;

(c) tax within the meaning of sub-section (2) of this section as that sub-section is applied by Part V of the Sales Tax Assessment Act (No. 2) 1930, Part V of the Sales Tax Assessment Act (No. 3) 1930, Part V of the Sales Tax Assessment Act (No. 4) 1930, Part V of the Sales Tax Assessment Act (No. 5) 1930, Part V of the Sales Tax Assessment Act (No. 6) 1930, Part V of the Sales Tax Assessment Act (No. 7) 1930, Part V of the Sales Tax Assessment Act (No. 8) 1930 or Part V of the Sales Tax Assessment Act (No. 9) 1930;

(d) charge within the meaning of sub-section 27 (2) of the Tobacco Charges Assessment Act 1955; or

(e) tax within the meaning of sub-section 47 (2) of the Wool Tax (Administration) Act 1964”; and

(b) by adding at the end thereof the following sub-section:

“(6) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.

Agent for absentee principal in winding-up of business

218. Section 33 of the Principal Act is amended—

(a) by inserting in sub-section (2) “refuses or” before “fails” (wherever occurring); and

(b) by adding at the end thereof the following sub-section:

“(3) In this section, ‘tax’ includes—

(a) further tax; and


 

(b) additional tax under section 29 or Part VIII.”.

When tax not paid during lifetime

219. Section 34 of the Principal Act is amended—

(a) by omitting “, whether intentionally or not, a taxpayer escapes full taxation in his lifetime by reason of not having duly made full, complete and accurate returns” and substituting “, at the time of a taxpayer’s death, tax due by the taxpayer has not been assessed or paid”;

(b) by omitting from paragraph (b) “make such returns and furnish such” and substituting “furnish such returns and”;

(c) by omitting from paragraph (c) “the amount of tax shall (where the taxpayer’s default was intentional) be double the amount of the difference between the sales tax so assessed and the amount actually paid by the taxpayer, and” and substituting “the amount of any tax that the executors and administrators are liable to pay”;

(d) by omitting from paragraph (d) all the words after “this” (first occurring) and substituting “section”; and

(e) by adding at the end thereof the following sub-section:

“(2) In sub-section (1), unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.

Provision for payment of tax by executors or administrators

220. Section 35 of the Principal Act is amended—

(a) by omitting from sub-section (1) “he had not paid the whole of the tax payable up to the date of his death” and substituting “tax due by the taxpayer has not been assessed or paid”;

(b) by inserting in sub-section (3) “refuse or” before “fail”; and

(c) by adding at the end thereof the following sub-section:

“(11) In this section, unless the contrary intention appears, ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.

Recovery of tax paid on behalf of another person

221. Section 36 of the Principal Act is amended by adding at the end thereof the following sub-section:

“(2) In sub-section (1), ‘tax’ includes—

(a) further tax; and

(b) additional tax under section 29 or Part VIII.”.