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A New Tax System (Wine Equalisation Tax) Bill 1999

1998-99

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

 

Presented and read a first time

 

 

 

 

 

 

 

 

 

A New Tax System (Wine Equalisation Tax) Bill 1999

 

No.      , 1999

 

(Treasury)

 

 

 

A Bill for an Act about a tax, relating to certain alcoholic beverages, to implement A New Tax System, and for related purposes

   

   

   



Contents

Part 1—Introduction                                                                                                             1

Division 1—Preliminary                                                                                              1

1-1......... Short title............................................................................................. 1

1-2......... Commencement................................................................................... 2

1-3......... How the wine tax law applies to things outside Australia and things happening before commencement 2

1-4......... States and Territories are bound by the wine tax law.......................... 2

Division 2—Overview of the wine tax legislation                                           3

2-1......... What this Act is about......................................................................... 3

2-5......... Liability to tax (Part 2)........................................................................ 3

2-10....... Quoting (Part 3).................................................................................. 3

2-15....... Wine tax credits (Part 4)...................................................................... 3

2-20....... Payment of wine tax (Part 5)............................................................... 4

2-25....... Miscellaneous (Part 6)........................................................................ 4

2-30....... Interpretative provisions (Part 7)......................................................... 4

2-35....... Administration, collection and recovery provisions (Part VI of the Taxation Administration Act 1953 )  4

Division 3—Defined terms                                                                                          5

3-1......... When defined terms are identified....................................................... 5

3-5......... When terms are not identified.............................................................. 5

3-10....... Identifying the defined term in a definition.......................................... 6

Division 4—Status of Guides and other non-operative material           7

4-1......... Non-operative material........................................................................ 7

4-5......... Explanatory sections........................................................................... 7

4-10....... Other material...................................................................................... 7

Part 2—Wine tax                                                                                                                     8

Division 5—General rules for taxability                                                             8

5-1......... What this Division is about................................................................. 8

5-5......... General rules for taxing assessable dealings....................................... 8

5-10....... Sale time brought forward if purchaser uses the wine before title passes 14

5-15....... Royalty-inclusive sale (AD2c and AD12c) or AOU (AD3d and AD13d)              14

5-20....... Indirect marketing sale (AD2d and AD12d)..................................... 15

5-25....... Untaxed sale (AD2e and AD12e) or AOU (AD3a and AD13a)...... 15

5-30....... Local entry of imported wine (AD10)............................................... 16

5-35....... Time of local entry if wine entered for home consumption before importation         20

5-40....... Reductions in wine tax for some importations that are free of customs duty            20

Division 7—Exemptions                                                                                             21

7-1......... What this Division is about............................................................... 21

7-5......... Exemption for dealings that are GST-free supplies........................... 21

7-10....... Exemptions based on quoting........................................................... 21

7-15....... Exemptions based on Schedule 4 to the Customs Tariff Act 1995 .... 21

7-20....... Exemption for local entry if wine has been taxed while in bond....... 22

Division 9—Taxable value                                                                                        23

9-1......... What this Division is about............................................................... 23

Subdivision 9-A—General rules for working out taxable value                   23

9-5......... How to work out the taxable value of a taxable dealing.................... 23

9-10....... Agreement with Commissioner regarding calculation of taxable value 23

Subdivision 9-B—Notional wholesale selling price                                          24

9-25....... The 2 methods of working out notional wholesale selling prices for retail dealings with grape wine       24

9-30....... Working out notional wholesale selling prices for retail dealings with wine that is not grape wine          24

9-35....... The half retail price method............................................................... 25

9-40....... The average wholesale price method................................................. 25

9-45....... Notional wholesale selling prices for other dealings......................... 25

Subdivision 9-C—Additions to taxable value                                                     26

9-65....... Taxable dealing with wine that is the contents of a container............ 26

9-70....... Assessable dealings with wine that involve the payment of an associated royalty    26

9-75....... Assessable dealing with wine in bond.............................................. 27

9-80....... Amounts not to be added if they are already included in the taxable value               28

Part 3—Quoting                                                                                                                     29

Division 13—Quoting for dealings in wine                                                       29

13-1....... What this Division is about............................................................... 29

13-5....... Standard grounds for quoting ABN.................................................. 29

13-10..... Additional quoting grounds in special circumstances........................ 30

13-15..... Periodic quoting................................................................................ 30

13-20..... Manner in which quote must be made............................................... 31

13-25..... Incorrect quote nevertheless effective for certain purposes............... 31

13-30..... Quote not effective for certain purposes if there are grounds for believing it was improperly made        31

13-35..... Improper quoting is an offence......................................................... 31

Part 4—Wine tax credits                                                                                                   33

Division 17—Wine tax credits                                                                                33

17-1....... What this Division is about............................................................... 33

17-5....... Wine tax credit entitlements............................................................... 33

17-10..... Claims for wine tax credits................................................................ 39

17-15..... Commissioner not required to consider credit claims for less than $200  40

17-20..... Wine tax credits to be applied against tax liabilities and excess refunded 40

17-25..... Excess wine tax credits must be repaid............................................. 40

17-30..... Clawback of CR15 wine tax credit on later recovery of bad debt...... 40

17-35..... Clawback of CR8 wine tax credit on later sale of defective wine...... 41

17-40..... Agreement with Commissioner regarding wine tax credits............... 42

17-45..... Notifying disallowance of wine tax credit claim................................ 42

Part 5—Payments and refunds of wine tax                                                          43

Division 21—Inclusion of wine tax and wine tax credits in net amounts               43

21-1....... What this Division is about............................................................... 43

21-5....... Wine tax added to net amounts.......................................................... 43

21-10..... Attribution rules for wine tax............................................................ 43

21-15..... Wine tax credits subtracted from net amounts................................... 44

Division 23—Wine tax on customs dealings                                                    45

23-1....... What this Division is about............................................................... 45

23-5....... Payment of wine tax on customs dealings......................................... 45

23-10..... Application of Division 165 of the GST Act.................................... 45

Part 6—Miscellaneous                                                                                                        46

Division 27—Miscellaneous                                                                                      46

27-1....... Application of this Act to cider, perry, mead and sake...................... 46

27-5....... Wine tax must be specified on invoice for wholesale sales............... 46

27-10..... Alteration of wine tax liability or wine tax credit if affected by non-arm’s length transaction  46

27-15..... Apportionment of global amounts..................................................... 47

27-20..... Commonwealth etc. not liable to pay wine tax.................................. 47

27-25..... Cancellation of exemptions from wine tax........................................ 48

27-30..... Application of the Criminal Code ..................................................... 48

27-35..... Regulations....................................................................................... 48

Part 7—Interpreting this Act                                                                                         50

Division 29—Rules for interpreting this Act                                                   50

29-1....... What forms part of this Act............................................................... 50

29-5....... What does not form part of this Act.................................................. 50

29-10..... Explanatory sections, and their role in interpreting this Act.............. 50

Division 31—Meaning of some important concepts                                   52

Subdivision 31-A—Wine                                                                                         52

31-1....... Meaning of wine ............................................................................... 52

Subdivision 31-B—Grape wine                                                                              53

31-5....... Meaning of grape wine ..................................................................... 53

Subdivision 31-C—Borne wine tax and wine tax borne                                  53

31-10..... Meanings of borne wine tax and wine tax borne ............................... 53

Subdivision 31-D—Obtaining wine under quote etc.                                        54

31-15..... Meaning of obtain wine under quote etc........................................... 54

Subdivision 31-E—Approved forms                                                                    54

31-20..... Meaning of approved form ............................................................... 54

Division 33—Dictionary                                                                                             56

33-1....... Dictionary......................................................................................... 56

 



A Bill for an Act about a tax, relating to certain alcoholic beverages, to implement A New Tax System, and for related purposes

The Parliament of Australia enacts: