Sales Tax Assessment (No. 5)
No. 109 of 1968
An Act to give effect, in relation to Sales Tax, to the European Convention on Customs Treatment of Pallets used in International Transport.
[Assented to 2 December 1968]
BE it enacted by the Queen’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. 5) 1968.
(2.) The Sales Tax Assessment Act (No. 5) 1930–1966, as amended by this Act, may be cited as the Sales Tax Assessment Act (No. 5) 1930–1968.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
3. After section 6b of the Sales Tax Assessment Act (No. 5) 1930–1966 the following section is inserted in Part II.:—
Pallets used in international transport.
“6c.—(1.) Where pallets are delivered under the last preceding section and it would be a contravention of the Convention by the Commonwealth to impose sales tax upon the sale value of the pallets, sales tax is not payable in respect of the sale value of the pallets.
“(2.) The last preceding sub-section is in addition to, and not in derogation of, the provisions of sub-section (5.) of the last preceding section.
“(3.) In this section—
‘pallet’ has the same meaning as in the Convention;
‘the Convention’ means the European Convention on Customs Treatment of Pallets used in International Transport signed at Geneva on the ninth day of December, One thousand nine hundred and sixty, as affected by any amendment of the Convention that has come into force.”.
Overview
The Sales Tax Assessment Act (No. 5) 1968 was enacted to address the need for harmonising the customs treatment of pallets used in international transport, in accordance with the European Convention on Customs Treatment of Pallets used in International Transport. This Act was assented to on 2 December 1968 and brought into operation on the same day, reflecting the urgency and significance of aligning Australian taxation policies with international standards. Enacted by the Queen, the Senate, and the House of Representatives of the Commonwealth of Australia, the policy objective of this Act is to ensure that sales tax is not imposed on the sale value of pallets when such imposition would contravene the Convention, thereby facilitating smoother international trade practices.
Scope and Application
The Sales Tax Assessment (No. 5) 1968 Act applies to the imposition of sales tax on the sale value of pallets used in international transport, specifically in accordance with the European Convention on Customs Treatment of Pallets used in International Transport. This Act ensures that sales tax is not payable on the sale value of pallets when it would be a contravention of the Convention for the Commonwealth to impose such tax. The Act is applicable to any entity or individual engaged in the sale of pallets that are transported internationally, and it adheres to the definitions and stipulations set forth in the aforementioned Convention. The Act has a national jurisdictional reach within the Commonwealth of Australia. There are no stated exclusions or exemptions within the Act itself, but the application may be influenced by subordinate instruments or regulations that might further define the scope and conditions under which the Act operates.
Key Provisions
The main operative sections of the Sales Tax Assessment (No. 5) 1968 Act revolve around the customs treatment of pallets used in international transport, specifically exempting sales tax on these items in certain circumstances. Section 6c(1) stipulates that sales tax is not payable on the sale value of pallets if imposing such tax would contravene the European Convention on Customs Treatment of Pallets used in International Transport. This provision is additional to existing provisions under section 6b, ensuring that the new rules do not override existing legal frameworks. Section 6c(2) clarifies that this new rule supplements, rather than replaces, the existing provisions. Section 6c(3) provides definitions for terms such as 'pallet' and 'the Convention', ensuring clarity and consistency with the international agreement.
The Act imposes specific obligations on parties involved in the sale and transport of pallets. Primarily, it requires compliance with the European Convention on Customs Treatment of Pallets used in International Transport. This means that businesses and individuals must ensure that their practices align with the Convention's stipulations regarding the customs treatment of pallets. Specifically, if the imposition of sales tax on the sale value of pallets would violate the Convention, such tax must not be charged. The Act mandates that the definition of 'pallet' and 'the Convention' be adhered to, ensuring uniformity and adherence to international standards.
Breach of the provisions of this Act can lead to various legal consequences. While the Act itself does not explicitly detail specific offences, penalties, or civil/criminal consequences for non-compliance, it is implicit that failure to adhere to the Convention’s customs treatment rules and the resultant exemption from sales tax could lead to legal challenges or fines. Given the nature of tax legislation, non-compliance might also attract penalties under broader tax laws, including fines or other financial penalties as prescribed by relevant tax statutes. The exact penalties would depend on the broader legislative context and administrative actions taken by tax authorities.