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Tax Laws Amendment (2008 Measures No. 3) Bill 2008

Schedule 2 Collection and administration of indirect taxes

Part 1 Overpayments of indirect tax and refunds

Taxation Administration Act 1953

1  Section 105-50 in Schedule 1 (heading)

Repeal the heading, substitute:

105-50   Time limit on recovery by the Commissioner

2  Section 105-50 in Schedule 1

Before “Any unpaid”, insert “(1)”.

3  Section 105-50 in Schedule 1

Omit “section 105-80”, substitute “this Act”.

4  Section 105-50 in Schedule 1

Omit all the words from and including “unless”.

5  At the end of section 105-50 in Schedule 1

Add:

             (2)  If:

                     (a)  an amount was paid to you, or applied under Division 3 of Part IIB of this Act, as:

                              (i)  a refund in relation to a * net amount, * net fuel amount or amount of * indirect tax; or

                             (ii)  an amount of indirect tax that was overpaid or wrongly paid; and

                     (b)  that amount exceeded the amount (if any) that you were entitled to be paid, or to have applied under Division 3 of Part IIB of this Act;

the amount of the excess (together with any relevant * general interest charge under this Act) ceases to be payable 4 years after it became payable by you.

             (3)  However, subsection (1) does not apply to an amount, and subsection (2) does not apply to an amount of an excess, if:

                     (a)  within those 4 years the Commissioner has required payment of the amount or the amount of excess by giving a notice to you; or

                     (b)  the Commissioner is satisfied that:

                              (i)  the payment of the amount was avoided by fraud or evaded; or

                             (ii)  the payment of the amount of excess, or its application under Division 3 of Part IIB of this Act, was brought about by fraud or evasion.

6  Section 105-55 in Schedule 1 (heading)

Repeal the heading, substitute:

105-55   Time limit on refunds etc. from the Commissioner

7  Subsection 105-55(1) in Schedule 1

Omit “or credit” (first occurring), substitute “, other payment or credit”.

8  Paragraphs 105-55(1)(a) and (b) in Schedule 1

Omit “or credit”, substitute “, other payment or credit”.

9  Paragraph 105-55(1)(c) in Schedule 1

Repeal the paragraph, substitute:

                     (c)  in the case of a credit—the credit is taken into account in working out:

                              (i)  a * net amount or * net fuel amount that the Commissioner may recover from you only because of subparagraph 105-50(3)(b)(i); or

                             (ii)  an amount of excess referred to in subsection 105-50(2) that the Commissioner may recover from you only because of subparagraph 105-50(3)(b)(ii).

10  Paragraph 105-55(2)(a) in Schedule 1

Repeal the paragraph, substitute:

                     (a)  a refund in relation to a * net amount or * net fuel amount in respect of a particular * tax period; or

                    (aa)  another payment that represents some or all of an amount:

                              (i)  that you paid as an amount of * indirect tax payable by you in respect of a particular tax period; and

                             (ii)  that exceeded the amount (if any) of such tax that you were liable to pay in respect of that tax period; or

11  Subsection 105-55(3) in Schedule 1

After “a refund”, insert “, other payment”.

12  Paragraphs 105-55(3)(a) and (b) in Schedule 1

After “the refund”, insert “, other payment”.

13  Paragraph 105-55(3)(c) in Schedule 1

Repeal the paragraph, substitute:

                     (c)  in the case of a fuel tax credit—the credit is taken into account in working out:

                              (i)  a * net fuel amount that the Commissioner may recover from you only because of subparagraph 105-50(3)(b)(i); or

                             (ii)  an amount of excess referred to in subsection 105-50(2) that the Commissioner may recover from you only because of subparagraph 105-50(3)(b)(ii).

14  Paragraph 105-55(4)(a) in Schedule 1

Omit “, under section 61-5 of the Fuel Tax Act 2006 , of”, substitute “in relation to”.

15  Subsection 105-55(5) in Schedule 1

Omit “under section 61-5 of the Fuel Tax Act 2006 ”, substitute “or other payment”.

16  Application

(1)        The amendments made to section 105-50 of Schedule 1 to the Taxation Administration Act 1953 by this Schedule apply in relation to an amount that:

                     (a)  is:

                              (i)  an unpaid net amount, net fuel amount or amount of indirect tax of a kind referred to in subsection 105-50(1) of Schedule 1 to that Act as amended by this Schedule; or

                             (ii)  an amount of excess of a kind referred to in subsection 105-50(2) of Schedule 1 to that Act as amended by this Schedule; or

                            (iii)  an amount of any relevant general interest charge under that Act that relates to an amount referred to in subparagraph (i) or (ii); and

                     (b)  became payable by you before the commencement of this Schedule;

unless, before that commencement, the Commissioner notified you in writing that the amount was payable.

(2)        The amendments made to section 105-55 of Schedule 1 to the Taxation Administration Act 1953 by this Schedule apply in relation to a refund, other payment or credit:

                     (a)  that is of a kind referred to in subsection 105-55(1) or (3) of Schedule 1 to that Act as amended by this Schedule; and

                     (b)  to which you became entitled before the commencement of this Schedule;

unless, before that commencement, you notified the Commissioner in writing, or the Commissioner notified you in writing, that you were entitled to the refund, other payment or credit.

(3)        To avoid doubt, this item does not prevent amendments made by this Schedule from applying to amounts that become payable, or entitlements that arise, on or after the commencement of this Schedule.



 

Part 2 Restriction on GST refunds

Taxation Administration Act 1953

17  Section 105-65 in Schedule 1

Repeal the section, substitute:

105-65   Restriction on GST refunds

             (1)  The Commissioner need not give you a refund of an amount to which this section applies, or apply (under Division 3 or 3A of Part IIB) an amount to which this section applies, if:

                     (a)  you overpaid the amount, or the amount was not refunded to you, because a * supply was treated as a * taxable supply, or an * arrangement was treated as giving rise to a taxable supply, to any extent; and

                     (b)  the supply is not a taxable supply, or the arrangement does not give rise to a taxable supply, to that extent (for example, because it is * GST-free); and

                     (c)  one of the following applies:

                              (i)  the Commissioner is not satisfied that you have reimbursed a corresponding amount to the recipient of the supply or (in the case of an arrangement treated as giving rise to a taxable supply) to an entity treated as the recipient;

                             (ii)  the recipient of the supply, or (in the case of an arrangement treated as giving rise to a taxable supply) the entity treated as the recipient, is * registered or * required to be registered.

Note:          Divisions 3 and 3A of Part IIB deal with payments, credits and RBA surpluses.

             (2)  This section applies to the following amounts:

                     (a)  in the case of a * supply:

                              (i)  so much of any * net amount or amount of * GST as you have overpaid (as mentioned in paragraph (1)(a)); or

                             (ii)  so much of any net amount that is payable to you under section 35-5 of the * GST Act as the Commissioner has not refunded to you (as mentioned in paragraph (1)(a)), either by paying it to you or by applying it under Division 3 of Part IIB of this Act;

                     (b)  in the case of an * arrangement:

                              (i)  so much of any net amount or amount of GST to which subparagraph (a)(i) would apply if the arrangement were a supply; or

                             (ii)  so much of any net amount to which subparagraph (a)(ii) would apply if the arrangement were a supply.

Note:          Division 3 of Part IIB deals with payments, credits and RBA surpluses.

18  Application

The amendment made by item 17 of this Schedule applies to amounts overpaid or not refunded:

                     (a)  to which section 105-65 of the Taxation Administration Act 1953 (as amended by this Part) applies; and

                     (b)  that are in respect of tax periods starting on or after 1 July 2008.

 

 

 

 

 

[ Minister’s second reading speech made in—

House of Representatives on 29 May 2008

Senate on 16 June 2008 ]

(117/08)