Sales Tax Procedure (Old Law) Regulations (Amendment) 1995 No. 87
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 87
Issued by the Authority of the Assistant Treasurer
Sales Tax Procedure Act 1934
Sales Tax Procedure (Old Law) Regulations (Amendment)
Section 13 of the Sales Tax Procedure Act 1934 (the Act) provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters which are necessary or convenient to be prescribed, for carrying out or giving effect to the Act, and in particular, by paragraph 13(h), for prescribing matters relating to the giving of certificates under the Act, and the acceptance of any such certificate as proof in legal proceedings.
The amendment contained in the regulations is a technical change required in consequence of an amendment to the Sales Tax Procedure (Old Law) Regulations (the Regulations) dealing with evidentiary certificates where the Commissioner of Taxation is taking action against a person for the recovery of sales tax. The amendment alters one of the evidentiary certificate requirements in Regulation 15 of the Regulations.
Regulation 15 prescribes the information which must be included in an evidentiary certificate to be used by the Commissioner of Taxation when taking action against a person to recover unpaid sales tax. Paragraph 15(b) requires the Commissioner to certify that an assessment of sales tax payable by a person was made against the person in respect of the year set out in the certificate. Section 17 of the Sales Tax Assessment Act (No. 1) 1930 and section 3 of Sales Tax Act (No. 1) 1930, and equivalent sections in other sales tax assessment and imposition Acts affecting transactions before 1 January 1993, do not impose a liability to taxation in respect of any year or other period.
The reference to "year" in paragraph 15(b) is inconsistent with associated assessment and imposition provisions. The requirement in paragraph 15(b) will therefore be that an assessment of sales tax payable by the person was made against the person. The amendment is needed to remove the reference to "year" in paragraph 15(b).
The amendment will operate retrospectively from 16 June 1994, the commencement date of Statutory Rules 1994 No. 193 which caused the inconsistency. As the retrospective affect of the amendment would not adversely affect any person it is considered that section 48 of the Acts Interpretation Act 1901 will not be contravened.
Details of the regulations are as follows:
Regulation 1 - provides that these regulations are taken to have commenced on 16 June 1994.
Regulation 2 - provides for the amendment of the Regulations.
Regulation 3 - effectively amends paragraph 15(b) by removing the requirement that the certificate referred to in regulation 15 of the Regulations must refer to the year in which the assessment of sales tax was made.
Overview
The Sales Tax Procedure (Old Law) Regulations (Amendment) 1995 No. 87 was issued under the authority of the Assistant Treasurer and amends the Sales Tax Procedure (Old Law) Regulations to address a technical inconsistency arising from changes in other sales tax legislation. Enacted to rectify a discrepancy in the evidentiary certificate requirements for sales tax recovery actions, this amendment ensures that the certificate provided by the Commissioner of Taxation aligns with the statutory provisions that do not impose a liability to taxation for a specific year. This change is necessary to ensure the validity of certificates used in legal proceedings, thereby maintaining the integrity of the tax recovery process. The amendment operates retrospectively from 16 June 1994, the date when the initial inconsistency was introduced by Statutory Rules 1994 No. 193.
Scope and Application
The Sales Tax Procedure (Old Law) Regulations (Amendment) 1995 No. 87 amends the Sales Tax Procedure (Old Law) Regulations to correct a technical inconsistency that arose due to changes in the Sales Tax Assessment Act (No. 1) 1930 and other related sales tax assessment and imposition Acts. The amendment applies to evidentiary certificates used by the Commissioner of Taxation when pursuing the recovery of unpaid sales tax from individuals or entities. It specifically targets Regulation 15, which outlines the information required in such certificates, by removing the reference to a specific "year" in the assessment to align with the revised assessment provisions. These regulations apply to all persons and entities subject to sales tax assessments under the relevant Acts and are effective from 16 June 1994, the date when the initial inconsistency was introduced. The changes are intended to ensure that the evidentiary certificates used in legal proceedings for sales tax recovery accurately reflect the legislative requirements without adversely affecting any individual or entity, as per section 48 of the Acts Interpretation Act 1901.
Key Provisions
The Sales Tax Procedure (Old Law) Regulations (Amendment) 1995 No. 87 makes a technical change to the Sales Tax Procedure (Old Law) Regulations, primarily addressing a discrepancy in the evidentiary certificate requirements for sales tax recovery actions. Section 13 of the Sales Tax Procedure Act 1934 empowers the Governor-General to create regulations necessary or convenient for the Act's implementation. Regulation 15 of the original Regulations requires the Commissioner of Taxation to include specific information in certificates used during sales tax recovery actions, including a reference to the year in which the assessment was made, as per paragraph 15(b). This requirement, however, is inconsistent with other related assessment and imposition provisions, which do not impose taxation liabilities for specific years.
To rectify this inconsistency, the amendment modifies Regulation 15, specifically paragraph 15(b), by removing the reference to "year" in the evidentiary certificate requirement. This change ensures that the certificate accurately reflects the assessment process without referencing a specific year, aligning it with the broader legislative framework. Regulation 2 formalises this amendment, and Regulation 3 specifies the removal of the year reference in paragraph 15(b). Regulation 1 ensures that these amendments are effective from 16 June 1994, the date of the initial inconsistency caused by Statutory Rules 1994 No. 193.
The obligations imposed by these regulations primarily concern the Commissioner of Taxation, requiring adherence to the revised evidentiary certificate standards when taking action against individuals for sales tax recovery. This includes ensuring that certificates used in legal proceedings are accurate and consistent with the relevant legislation. The regulations do not impose direct obligations on taxpayers but ensure that the legal process for sales tax recovery is fair and legally sound.
Any failure to comply with the amended evidentiary certificate requirements could potentially lead to legal challenges regarding the validity of sales tax assessments and recovery actions. While the regulations do not explicitly state penalties for non-compliance, breaches of evidentiary standards in legal proceedings can have significant implications, including the potential for cases to be dismissed or overturned. The maximum penalties for such breaches are not detailed in the regulations but would typically fall under general legal consequences for improper use of evidence in court.