Pay-roll Tax Assessment Amendment Act 1982 (WA)

WESTERN AUSTRALIA.

PAY-ROLL TAX ASSESSMENT.

No. 128 of 1982.

AN ACT to amend the Pay-roll Tax Assessment

Act 1971-1982.

[Assented to 10 December 1982.]

BE it enacted by the Queen's Most ExcellentMajesty, by and with the advice and consent of the Legislative Council and the Legislative Assembly of Western Australia, in this present Parliament assembled, and by the authority of the same, as follows:—

1. (1) This Act may be cited as the Pay-roll Tax =galleon.

Assessment Amendment Act 1982.

(2)	In this Act the Pay-roll Tax Assessment Act Reprove

15 Dec. 1978

is referred to as the principal Act.	and
amended by
Acts Nos. 40

(3)	The principal Act as amended by this Act 03 1981 and

may be cited as the Pay-roll Tax Assessment Act 10 of 1982.

1971-1982.

No. 128.]

Pay-roll Tax Assessment.

[1982.

Commence-

ment.

This Act shall come into operation on 1

January 1983.

Section 2

amended.

Section 2 of the principal Act is amended by deleting "ss. 6-11" and substituting the following-

" ss. 6-11E. " .

Section 3

amended.

Section 3 of the principal Act is amended

(a)	in subsection (1), in the definition of "employer", by inserting after "Australia" the following-

" and includes also a person who is an employment agent for the purposes of paragraph (f) of the definition of "wages" in this subsection " ;

(b)	in subsection (1), in the definition of "State", by deleting "together deemed to be such a State" and substituting the follow- ing

" deemed to be States " ;

(c)	in subsection (1), in the definition of "wages"—

(i) by deleting "and" at the end of para- graph (d);

(ii) by deleting the full stop at the end of paragraph (e) and substituting the following-

" ; and " ;

(iii) by inserting after paragraph (e) the following paragraph-

" (f) any amount paid or payable by way of remuneration by an employment agent directly or indirectly to a person who was engaged to perform services for a client

1982.]

Pay-roll Tax Assessment.

[No. 128.

of the employment agent, or to some other person in respect of those services, as a result of which engage- ment the employment agent receives directly or indirectly payment, whether by way of a lump sum or an ongoing fee, during or in respect of the period when the services are provided by that person to the client. " ;

(d)	by inserting after subsection (2) the follow- ing subsection

(2a) For the purposes of paragraph (f) of the definition of "wages" in sub- section (1) of this section, "employ- ment agent" means a person (in this definition referred to as the agent) who by an arrangement procures the ser- vices of a person (in this definition referred to as the worker) for another person (in this definition referred to as the client) under which arrangement

(a)	the worker does not become the employee of either the agent or the client but does carry out duties of a similar nature to those of an em- ployee; and
(b)	remuneration is paid directly or indirectly by the agent to the worker or to some other person in respect of the services provided by the worker,

but this subsection does not apply to the current term of any arrangement entered into by an employment agent before 12 October 1982 which extends after 1 January 1983 if the Commis-

No. 128.]

Pay-roll Tax Assessment.

[1982.

sioner is satisfied that no provision was made in the arrangement for the pay- ment of pay-roll tax in respect of that term. , " ; and

(e)	in subsection (3), by deleting "together deemed to be a State" and substituting the following-

" deemed to be States " .

Section /IE

inserted.

5. After section 11D of the principal Act, the following section is inserted-

Arrange-

ments for	11E. (1) Where any person enters into any whether in writing or otherwise, whereby a natural person performs or renders, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing or rendering the services and the effect of such agreement, transaction, or arrangement is to reduce or avoid the liability of any person to the assessment, im- position, or payment of pay-roll tax, the Commissioner may
avoidance
of tax may	agreement, transaction, or arrangement,
be dis-
regarded.

(a)

disregard such agreement, trans-

action, or arrangement;

(b)

determine that any party to such agreement, transaction, or arrange- ment shall be deemed to be an employer for the purposes of this Act;

and

(c)	determine that any payment made in respect of such agreement, trans- action, or arrangement shall be deemed to be wages for the purposes of this Act.

1982.]

Pay-roll Tax Assessment.

[No. 128.

(2) Where the Commissioner makes a determination under subsection (1) of this section, he shall serve a notice to that effect on the person deemed to be an employer for the purposes of this Act and shall set out in the notice the facts on which the Commis- sioner relies and his reasons for making the determination. " .

Section

6. After section 16D of the principal Act, the following section is inserted

16DA

inserted.

CI	Grouping of

16DA. (1) For the purposes of this Act, two businesses constitute a group if--

head and

branch

businesses.

(a)	one of the businesses is a branch, agency, or subsidiary of a head or parent business; and
(b)	the head or parent business exercises managerial control, whether admini- strative, financial, or procedural over the branch, agency or subsidiary.

(2) Where the Commissioner is satisfied, having regard to the nature and degree of managerial control exercised by the head or parent business and to any other matters that he considers relevant, that it would not be just and reasonable to include as a member of a group a person or persons carrying on a business, the Commissioner may, by order in writing served on that person or persons, exclude him or them from the group. " .

Section 16FI

7. Section 16H of the principal Act is amended

amended.

(a)	in subsection (1) by inserting after "16D" the following-

, 16DA " ;

(b)	in subsection (2) by inserting after "16D" the following-

" , 16DA " ;

No. 128.]

Pay-roll Tax Assessment.

[1982.

(c)	in subsection (3) by inserting after "16D" the following-

" , 16DA " ; and

(d)	in subsection (4) by inserting after "16D (7)" the following-

" , 16DA (2) " .

Section 161

amended.

8. Section 161 of the principal Act is amended

(a)	by inserting after subsection (1) the follow- ing subsection

CI (la) If the members of a group do

not in accordance with subsection (1) of this section designate one of the members of the group to be the desig- nated group employer in respect of the group for the purposes of this Act, the Commissioner may exercise in respect of the group the powers of designation and nomination conferred on members of the group by that subsection and for the purposes of this Act such a designa- tion and nomination by the Commis- sioner shall be by instrument in writing served on the member of the group designated as the designated group employer and shall have the same effect and give rise to the same consequences as if validly made by the members of the group. " ;

(b)	in subsection (2) by deleting "The desig- nated" and substituting the following-

" Subject to subsection (2a) of this section, the designated " ;

(c)	by inserting after subsection (2) the follow- ing subsections

(2a) The members of a group may

exercise the power of revoking a desig-

nation conferred by subsection (2) of

1982.]

Pay-roll Tax Assessment.

[No. 128.

this section only with the prior written consent of the Commissioner or, if at the same time as revoking the designa- tion, the members make a further designation of one of their members to be the designated group member in substitution for the member whose designation is revoked.

(2b) Where the Commissioner has exercised the powers conferred on him by subsection (la) of this section, he may, by instrument in writing served on the member of the group designated as the designated group employer, revoke his designation of that member as the designated group employer and thereafter may further exercise the powers conferred on him by that subsection. "

(d) in subsection (3)—

(I) by inserting after "subsection (1)"

the following-

" or (la) " ; and

(ii) by inserting after "Commissioner" the following-

" or by the Commissioner, as the

case may be, " ; and

(e) in subsection (6)-

(i) by inserting after "(1)" the follow- ing

" or (la) " ; and

(ii) by inserting after "(2)" the follow- ing

" or (2b) "

No. 128.]

Pay-roll Tax Assessment.

[1982.

Section 18

amended.

9. Section 18 of the principal Act is amended in

subsection (5)-

(a)	by deleting "double" and substituting the following-

" an amount equal to " ; and

(b)	by deleting "or the amount of two dollars, whichever is the greater, " .

Section 22

amended.

10. Section 22 of the principal Act is amended in

subsection (1)-

(a)	by deleting "forthwith be payable—" and substituting the following

44 forthwith be payable of an amount

equal to the amount of the pay-roll tax, further tax or additional tax, as the case may be. " ; and

(b)	by deleting paragraphs (a) and (b).

Section 25

amended.

11. Section 25 of the principal Act is amended in subsection (4) by deleting "One thousand" and sub- stituting the following-

" Two thousand " .

Section 28

amended.

12. Section 26 of the principal Act is amended in

subsection (2) by deleting "One thousand" and sub-

stituting the following-

" Two thousand " .

Section 31

amended.

13. Section 31 of the principal Act is amended in

subsection (2) by deleting "One thousand" and sub-

stituting the following-

" Two thousand " .

Section 35

amended.

14. Section 35 of the principal Act is amended in

subsection (1) by deleting "One thousand" and sub-

stituting the following-

" Two thousand " .

1982.]

Pay-roll Tax Assessment.

[No. 128.

15. Section 36 of the principal Act is amended by 2=1216.

repealing subsection (1) and substituting the

following subsection

(1) Notwithstanding anything contained

in section 35 of this Act, any employer who-

(a)	fails or neglects, otherwise than as referred to in paragraph (b) of this subsection, duly to furnish any return or information as and when required by this Act or by the Com- missioner shall be liable to pay by way of additional tax an amount equal to the amount of pay-roll tax payable by him; or
(b)	furnishes a return to the Com- missioner, but fails or neglects to include in that return all of the tax- able wages required by this Act to be included in that return shall be liable to pay by way of additional tax an amount equal to the amount of the difference between the pay-roll tax properly payable and the pay-roll tax payable upon the basis of the return furnished,

in addition to any penal tax that is or may become payable under section 22 of this Act. " .

16. Section 37 of the principal Act is amended by =IV.

deleting "One thousand" and substituting the

following-

" Two thousand " .

deleting "One thousand" and substituting the

17. Section 40 of the principal Act is amended by =ex

following-

" Two thousand " .

No. 128.]

Pay-roll Tax Assessment.

[1982.

Section 44

amended.

18. Section 44 of the principal Act is amended in subsection (1) by deleting "One thousand" and sub- stituting the following-

" Two thousand " .

Schedule 1

repealed and

Substituted.

19. Schedule 1 to the principal Act is repealed

and the following Schedule is substituted

SCHEDULE 1.

[ss. 9E, 11A, 12,

and 16J].

Minimum

amount	1. The amount specified for the purposes of the defini-
for s. 9E.	tion of "minimum amount" in section 9E (1) of this Act is $3 150.
Prescribed
amount	2. The amount specified for the purposes of the defini-
for s. 9E.	tion of "prescribed amount" in section 9E (1) of this Act is $10 416.
Prescribed
amount	3. For the purposes of sections 11A (2e) and 165 (6)
for 1982-83
for ss. 11A	of this Act, the amount shall be calculated for the
and 16J.	purposes of the financial year commencing on 1 July 1982 in accordance with the following formulae

51 000 C

{

000 C

A}13

For the Period

184

1 July 1982	Or
to 31 December A + B

1982 18 000 C

184

whichever is the greater

and

62 496 C

2 {

62 496 Cl

A 413

181

For the Period

1 January 1983	Or
to 30 June 1983 A + B

18 900 C

181

whichever is the greater

Where: A = Taxable wages paid or payable during the period by an employer, or in the case of a group, by the members of that group.

B = Interstate wages paid or payable during the period by an employer, or in the case of a group, by the members of that group.

C = Number of days in which wages were paid or payable during the period by an employer, or in the case of a group, by the members of that group.

1982.]

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[No. 128.

4. For the purposes of sections 11A (2e) and 16J (6) Prescrtd

of this Act the amount shall be calculated for the titt913

purposes of the financial year commencing on 1 July grstr.11A

1983 and every succeeding financial year in accordance and 163.

with the following formulae

124 992 C

{

124 992 C 1;

A +

A + B	37 800 C
whichever is the greater

Where: A = Taxable wages paid or payable during the fin- ancial year by an employer, or in the case of a group, by the members of that group.

B = Interstate wages paid or payable during the financial year by an employer, or in the case of a group, by the members of that group.

C = Number of days during the financial year in which wages were paid or payable by an employer, or in the case of a group, by the members of that group.

= Number of days in the financial year.

5. The amount per week prescribed for the purposes arcs anted

of section 12 of this Act is $2 400. " .

for s. 12.

20. Without prejudice to the application of the Interpretation Act 1918 to the repeal of Schedule 1 to the principal Act by section 19 of this Act, Sche- dule 1 to the principal Act, in the form in which it was in force immediately before the coming into operation of this Act, shall continue to have effect, according to its tenor and as if it had not been repealed, with respect to the period before the com- ing into operation of this Act.

savings.