Pay-roll Tax (Amendment) Act 1986 (NSW)

PAY-ROLL TAX (AMENDMENT) ACT 1986 No. 89

NEW SOUTH WALES

TABLE OF PROVISIONS

1.       Short title

2.        Commencement

3.        Principal Act

4.        Amendment of Act No. 22, 1971

5.       Transitional provisions

SCHEDULE 1—AMENDMENTS TO THE PRINCIPAL ACT

SCHEDULE 2—TRANSITIONAL PROVISIONS RELATING TO AMENDMENTS

MADE TO THE PRINCIPAL ACT BY ACT No. 175, 1985

PAY-ROLL TAX (AMENDMENT) ACT 1986 No. 89

NEW SOUTH WALES

Act No. 89, 1986

An Act to amend the Pay-roll Tax Act 1971 with respect to the tax payable on payments made under certain contracts and agency arrangements; and for other purposes. [Assented to, 26 May 1986]

See also Land Tax Management (Amendment) Act 1986; Stamp Duties (Amendment) Act 1986.

Pay-roll Tax (Amendment) 1986

BE it enacted by the Queen's Most Excellent Majesty, by and with ihe advice and consent of the Legislative Council and Legislative Assembly of New South Wales in Parliament assembled, and by the authority of the same, as follows:

Short title

1. This Act may be cited as the "Pay-roll Tax (Amendment) Act 1986".

Commencement

2. (1) Except as provided by subsections (2)-(4), this Act shall commence on the date of assent to this Act.

(2) Section 4, in its application to a provision of Schedule 1, shall commence or be deemed to have commenced, as the case requires, on the commencement of the provision.

(3) Section 5 and Schedule 2 shall be deemed to have commenced on 3 December 1985.

(4) Schedule 1 (3)-(5) shall be deemed to have commenced on 22 January

1986.

Principal Act

3. The Pay-roll Tax Act 1971 is referred to in this Act as the Principal

Act.

Amendment of Act No. 22, 1971

4. The Principal Act is amended in the manner set forth in Schedule 1.

Transitional provisions

5. Schedule 2 has effect.

Pay-roll Tax (Amendment) 1986

SCHEDULE 1

(Sec. 4)

AMENDMENTS TO THE PRINCIPAL ACT

(1) Section 3A (Application of this Act to certain contracts)—

(a) Section 3A ( I A ) —

After section 3A (1), insert:

(1A) For the purposes of this section, a contract under which—

(a)	a person is supplied with services ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them;
(b)	a person is supplied with services for or in relation to the procurement of persons desiring to be insured by the person; or
(c)	a person is supplied with services for or in relation to the door-to-door sale of goods to consumers on the person's

behalf,

is not a relevant contract, unless the Chief Commissioner determines that the contract was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.

(b) Section 3A (3)—

Omit "Where", insert instead "Except as provided by subsection

(3A), where".

(c) Section 3A (3A)—

After section 3A (3), insert: (3A) Where a contract is a relevant contract pursuant to both subsection (1) (a) and subsection (1) (b) by reason of the supply by a person (in this subsection referred to as the "agent" ), in the capacity of an employment agent described in section 3 (4), of services, being services—

(a) procured by an arrangement so described; and

(b) supplied under such an arrangement to another person (in this subsection referred to as the "client" ) for or in relation to the performance of work,

Pay-roll Tax (Amendment) 1986

SCHEDULE 1—continued

AMENDMENTS TO THE PRINCIPAL ACT —continued

the agent shall be deemed to be an employer but the client,

notwithstanding subsection (2) (a) (ii), shall not.

(2) Section 5 (Disclosure of information, etc.)—

(a) Section 5(1)—

Omit "subsection (2)" insert instead "subsections (2) and (2A)".

(b) Section 5 (2A)—

After section 5 (2), insert:

(2A) The Chief Commissioner may perform the functions of a State taxation officer under Part IIIA of the Taxation Administration Act 1953 of the Commonwealth, as amended and in force for the time being.

(3) Section 1 1B (Annual adjustments)—

Section 11B (3), (4)—

Omit section 1 1B (3), insert instead:

(3) An application under subsection (2) (a) shall be made within 6 years after the end of the financial year in respect of which the refund or rebate is applied for.

(4) The Chief Commissioner may, in a particular case, dispense with the necessity for an application.

(4) Section 19 (Refunds)—

(a) Section 19—

Omit "date of the overpayment", insert instead "end of the financial year during which wages to which the tax relates were paid".

(b) Section 19 (2)—

At the end of section 19, insert:

(2) The Chief Commissioner may, in a particular case, dispense with the necessity for an application under subsection (1).

Pay-roll Tax (Amendment) 1986

SCHEDULE I—continued

AMENDMENTS TO THE PRINCIPAL ACT —continued

(5) Schedule 1 (Supplementary pay-roll tax)—

(a) Clause 5 (Annual adjustments)—

Omit clause 5 (3), insert instead:

(3) An application under subclause (2) shall be made within 6 years after the end of the financial year in respect of which the refund or rebate is applied for.

(4) The Chief Commissioner may, in a particular case,

dispense with the necessity for an application.

(b) Clause 9 (Annual adjustments)—

Omit clause 9 (7), insert instead:

(7) An application under subclause (4) shall be made within 6 years after the end of the financial year in respect of which the refund or rebate is applied for.

(8) The Chief Commissioner may, in a particular case,

dispense with the necessity for an application.

SCHEDULE 2

(Sec. 5)

TRANSITIONAL PROVISIONS RELATING TO AMENDMENTS MADE TO THE

PRINCIPAL ACT BY ACT No. 175, 1985

Certain payments by employment agents not taxable

1. Notwithstanding paragraph (f) of the definition of "wages" in section 3 (1) of the Prncipal Act, an amount paid or payable, by a person who is an employment agent for the purposes of that paragraph, for or in respect of any services performed for a client of that person shall be deemed not to be wages, to the extent to which the amount so paid or payable relates to—

(a)	services which are procured by that person by an arrangement entered into before 1 March 1986 and which are provided before 1 July 1986; or
(b)	services which are procured by that person by an arrangement entered into on or after 1 March 1986 and which are provided before 1 April 1986.

Pay-roll Tax (Amendment) 1986

SCHEDULE 2—continued

TRANSITIONAL PROVISIONS RELATING TO AMENDMENTS MADE TO THE

PRINCIPAL ACT BY ACT No. 175, 1985—continued

Certain payments under relevant contracts not taxable

(1) Notwithstanding section 3A (2) (c) of the Principal Act, an amount paid or payable in relation to the performance, by a person who (by virtue of section 3A (2) (b) of the Principal Act) is deemed to be an employee, of work for or in relation to which services are supplied under a relevant contract shall be deemed not to be wages, to the extent to which the amount so paid or payable relates—

2.

(a)	where the relevant contract was entered into before 1 March 1986—to services provided before 1 July 1986; or
(b)	where the relevant contract was entered into on or after 1 March 1986—to services provided before 1 April 1986.

(2) Where a person—

(a)	has entered into a contract (in this subclause referred to as the "principal contract" ) for or in relation to the performance of work, being a contract that would, but for the operation of section 3A (1) (d) of the Principal Act, be a relevant contract; and
(b)	enters into a relevant contract under which services are to be supplied for or in relation to the performance of work for the purposes of the principal contract,

an amount paid or payable for or in respect of the work performed under the relevant contract shall, notwithstanding section 3A (2) (c) of the Principal Act, be deemed not to be wages, to the extent to which the amount so paid or payable relates—

(c)	where the principal contract was entered into before 1 March 1986—to services provided, under the relevant contract, before 1 July 1986; or
(d)	where the principal contract was entered into on or after 1 March 1986—to services provided, under the relevant contract, before 1 April 1986.

(3) In this clause, "relevant contract" means a relevant contract referred to in section

3A of the Principal Act.