Taxation Administration Amendment Regulations 2000 (No. 4) (Cth)

Taxation Administration Amendment Regulations 2000 (No. 4)

Statutory Rules 2000 No. 184

I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under theTaxation Administration Act 1953.

Dated 5 July 2000

WILLIAM DEANE

Governor-General

By His Excellency’s Command

c. r. kemp

Assistant Treasurer

Taxation Administration Amendment Regulations 2000 (No. 4)1

Statutory Rules 2000 No. 1842

made under the

Taxation Administration Act 1953

   

Contents

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1Name of Regulations

 These Regulations are the Taxation Administration Amendment Regulations 2000 (No. 4).

2Commencement

These Regulations are taken to have commenced on the commencement of items 4 to 9 of Schedule 4 to the A New Tax System (Tax Administration) Act (No. 1) 2000.

Note Under subsection 2 (11) of theA New Tax System (Tax Administration) Act (No. 1) 2000, items 4 to 9 of Schedule 4 to that Act commence, or are taken to have commenced, on 1 July 2000, immediately after the commencement of the amendments of the Income Tax Assessment Act 1936 made by Part 1 of Schedule 5 to the A New Tax System (Tax Administration) Act 1999.

Part 5 of the Taxation Administration Regulations 1976 will commence on 1 July 2000. The effect of regulation 2 is that the amendments set out in Schedule 1 to these Regulations will commence immediately after the commencement of Part 5.

3Amendment of Taxation Administration Regulations 1976

Schedule 1 amends the Taxation Administration Regulations 1976.

Schedule 1Amendment

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(regulation 3)

[1]Before Part 5

insert

Part 4AIndirect tax refund scheme

21ADefinitions for Part 4A

 In this Division, unless the contrary intention appears:

borne wine tax has the meaning given by the A New Tax System (Wine Equalisation Tax) Act 1999.

car has the meaning given by section 995-1 of the Income Tax Assessment Act 1997.

goods has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999.

international agreement means:

• (a)

  a convention or treaty to which Australia is a party; or

• (b)

  an agreement between Australia and a foreign country;

and includes, for example, an agreement, arrangement or undertaking between a Minister and an official or authority of a foreign country.

taxable supplyhas the meaning given by the A New Tax System (Goods and Services Tax) Act 1999.

tax invoice has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999.

wine has the meaning given by the A New Tax System (Wine Equalisation Tax) Act 1999.

Note   Amounts of luxury car tax are included in net amounts under the GST system. This has the effect of incorporating the luxury car tax into the payments and refunds system for the GST.

21BSpecification of kind of entity

• (1)

  For subsection 62C (1) of the Act, an entity of the kind mentioned in subregulation (2) is specified.

• (2)

  For subregulation (1), an entity must be an entity that is the subject of an international agreement that provides that the Commonwealth is under an obligation to grant indirect tax concessions in relation to the entity.

Example

The Australian-American Educational Foundation, which was established under the Agreement between the Government of the Commonwealth of Australia and the Government of the United States of America for the financing of certain educational exchange programmes.

The Agreement was done at Canberra on 28 August 1964, and amended on 12 May 1967, 5 December 1988 and 21 February 1992 by exchange of Diplomatic Notes.

21CSpecification of kind of acquisition

• (1)

  For subsection 62C (1) of the Act, an acquisition, by an entity mentioned in regulation 21B, of the kind mentioned in subregulation (2) is specified.

• (2)

  The acquisition must be:

  • (a)

    an acquisition that is permitted by the international agreement relevant to the entity; and

  • (b)

    an acquisition of:

    • (i)

      a thing the supply of which is a taxable supply; or

    • (ii)

      wine on which the entity has borne wine tax.

21DConditions and limitations of refunds

• (1)

  For section 62C of the Act, an entity of the kind specified in subregulation 21B (1) is entitled to a refund of an amount of indirect tax paid on an acquisition of the kind specified in subregulation 21C (1) if the entity has agreed in writing to repay the amount of the refund to the Commissioner in any of the following circumstances:

  • (a)

    if the entity purchased a car, and agreed to retain the car for 3 years after purchasing the car — the entity disposes of the car to an entity (other than an entity of a kind specified by subregulation 21B (1)) before the end of 3 years after the first entity purchased the car;

  • (b)

    if the entity purchased goods other than a car — the entity disposes of the goods (other than to an entity of a kind specified by subregulation 21B (1)) in Australia or an External Territory before the end of 2 years after the entity purchased the goods;

  • (c)

    if the entity acquired a service — the entity assigns the entity’s entitlement to the service to another entity (other than an entity of a kind specified by subregulation 21B (1)) in Australia or an External Territory.

• (2)

  The amount to be repaid is:

  • (a)

    for an acquisition to which paragraph (1) (a) or (b) applies — the proportion of the amount of indirect tax paid for the acquisition that is equal to the proportion of the period mentioned in the paragraph remaining after the entity disposes of the acquisition; and

  • (b)

    for an acquisition to which paragraph (1) (c) applies — the amount of indirect tax paid for the acquisition.

• (3)

  The amount of indirect tax to be refunded to an applicant is limited by the terms of the international agreement to which the entity is subject.

• (4)

  The entity must use the taxable supply acquired by the entity in accordance with the terms of the international agreement to which the entity is subject.

21EPeriod and manner of payment of refunds

• (1)

  An application for a refund:

  • (a)

    must be signed by the applicant; and

  • (b)

    must be sent:

    • (i)

      to the Australian Taxation Office; and

    • (ii)

      with the tax invoice for the acquisition; and

  • (c)

    in the case of an acquisition of a car — may be sent any time after the acquisition; and

  • (d)

    in the case of an acquisition that is not a car — may be:

    • (i)

      sent with another claim; or

    • (ii)

      sent at least 3 months after another claim made by the entity.

Note   Subparagraph (1) (d) (ii) is intended to limit the number of claims from each entity to 1 in each quarter, to minimise delays in the processing of claims.

• (2)

  For subsection 62C (1) of the Act, the amount is to be paid to a single recipient or account nominated by the entity.

Notes

1. These Regulations amend Statutory Rules 1976 No. 129, as amended by 1984 Nos. 407 and 415; 1989 No. 73; 1993 No. 194; 1994 Nos. 55, 198 and 340; 1996 No. 347; 2000 Nos. 73, 109 and 152.

2. Made by the Governor-General on 5 July 2000, and notified in the Commonwealth of Australia Gazette on 12 July 2000.