SALES TAX ASSESSMENT (No. 4).
No. 50 of 1933.
An Act to amend the Sales Tax Assessment Act (No. 4) 1930-1933.
[Assented to 12th December, 1933.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title and citation.
1.—(1.)This Act may be cited as the Sales Tax Assessment Act (No. 4) 1933.
(2.) Section nine of the Financial Relief Act 1933 is amended by omitting sub-section (4.).
(3.) The Sales Tax Assessment Act (No. 4) 1930-1932, as amended by the Financial Relief Act 1933, is in this Act referred to as the Principal Act.
(4.) The Principal Act, as amended by this Act, may be cited as the Sales Tax Assessment Act (No. 4) 1930-1933.
Further tax.
2. Section ten of the Principal Act is amended by inserting after sub-section (1.) the following sub-section:—
“(1a.) Where—
(a) any person makes default in furnishing any return; or
(b) the Commissioner is not satisfied with the return made by any person; or
(c) the Commissioner has reason to believe or suspect that any person (though he may not have furnished any return) is liable to pay sales tax,
the Commissioner may cause an assessment to be made of the amount upon which, in his judgment, sales tax ought to be levied, and the person shall be liable to sales tax thereon, excepting so far as he establishes on objection that the assessment is excessive.”.
Refunds of tax.
3. Section eleven of the Principal Act is amended by adding at the end thereof the following sub-section:—
“(2.) Notwithstanding anything contained in this section, if, either before or after the commencement of this sub-section, any alteration is made in the rate of sales tax payable in respect of
any goods, no refund, repayment or reduction shall, by reason of that alteration, be made of any amount paid or payable by any person as sales tax in respect of goods applied by a taxpayer to his own use before the date of assent to the law making the alteration.”.
Sale value of goods.
4. Notwithstanding anything contained in section two of the Sales Tax Assessment Act (No. 4) 1932, the provisions of section four of the Sales Tax Assessment Act (No. 4) 1930-1931, as in force immediately prior to the commencement of the Sales Tax Assessment Act (No. 4) 1932, shall continue, and be deemed to have at all times continued, in force for all purposes in connexion with liability to sales tax in respect of goods applied by a person to his own use prior to such commencement.
Overview
The Sales Tax Assessment (No. 4) Act 1933 was enacted by the Commonwealth Parliament to amend the Sales Tax Assessment Act (No. 4) 1930-1933. This Act was introduced to address issues related to the assessment and collection of sales tax, as well as to provide clarity on the refund and reduction of tax amounts. The primary policy objective of the Act is to ensure that sales tax is properly assessed and collected from individuals and entities liable for the tax, whilst also preventing the refund or reduction of tax amounts paid in respect of goods used by a taxpayer prior to changes in the tax rate. This Act plays a crucial role in maintaining the integrity of the sales tax system and ensuring that tax revenues are collected effectively.
Scope and Application
The Sales Tax Assessment (No. 4) Act 1933 applies to all persons, entities, and transactions involved in the sale of goods within the Commonwealth of Australia. The Act amends the Sales Tax Assessment Act (No. 4) 1930-1933 by introducing provisions that allow the Commissioner to make assessments of sales tax upon individuals or entities that default in furnishing returns or where the Commissioner is not satisfied with the returns made. This applies regardless of whether the person has furnished a return, provided there is reason to believe or suspect that sales tax is owed. Furthermore, the Act includes measures preventing refunds, repayments, or reductions in sales tax if alterations are made to the tax rate after goods have been applied to personal use by a taxpayer before the amendment. Additionally, the Act ensures that certain provisions from earlier Acts continue to apply to sales of goods for personal use prior to the commencement of the 1932 Act. While the Act itself does not specify exclusions, exemptions, or thresholds, the application and enforcement of the Act may be further detailed through subordinate instruments.
Key Provisions
The Sales Tax Assessment (No. 4) Act 1933 makes several key amendments to the Sales Tax Assessment Act (No. 4) 1930-1932, referred to as the Principal Act. Firstly, it introduces an additional tax provision (section 2), allowing the Commissioner to assess sales tax if a person defaults on providing a return, the Commissioner is not satisfied with the return, or the Commissioner suspects liability for sales tax even if no return has been made. The person can challenge the assessment if they believe it to be excessive. Secondly, it modifies the refund provisions (section 3), stating that no refund, repayment, or reduction of sales tax will be made due to any alteration in the sales tax rate, regardless of when the goods were applied to personal use relative to the alteration. Lastly, it maintains the provisions of the Sales Tax Assessment Act (No. 4) 1930-1931 for determining the sale value of goods used by a person prior to the commencement of the 1932 Act (section 4).
Under the amended Act, taxpayers are required to furnish returns as per the Commissioner's demands and satisfy the Commissioner's assessment processes. If a person defaults in providing a return or the Commissioner is not satisfied with the return, the Commissioner can unilaterally assess the sales tax liability. Furthermore, taxpayers must ensure that any sales tax paid in respect of goods used before a change in the sales tax rate is not subject to refund, regardless of when the goods were applied to personal use. This places a duty on taxpayers to maintain accurate records and respond appropriately to any assessments made by the Commissioner.
The Act imposes penalties and consequences for non-compliance with the sales tax provisions. If a person fails to provide a required return or the Commissioner deems the return inadequate, the Commissioner can proceed with an assessment of sales tax, which the person must pay unless they can prove the assessment is excessive. Additionally, the Act prevents refunds for sales tax changes regardless of the timing of goods' application to personal use, which could result in taxpayers being overcharged if they do not keep accurate records or challenge the tax assessments. The penalties are not explicitly stated in the text, but non-compliance could lead to legal consequences as determined by the relevant courts.