9-45 Notional wholesale selling prices for other dealings

The notional wholesale selling price for a taxable dealing with wine that is neither:

(a) a ^*retail sale of wine; nor

(b) an ^*AOU connected with retail sales of wine;

is the ^*price (excluding wine tax and ^*GST) for which you could reasonably have been expected to sell the wine by wholesale under an arm’s length transaction.

Subdivision 9-C—Additions to taxable value

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

(1) This section deals with situations in which a ^*container is associated with wine (the contents) that is the subject of a ^*taxable dealing. The aim of this section is to ensure that the ^*taxable value will include a component for the container, even though the parties may have allocated a separate amount to the container.

(2) If:

(a) the ^*taxable value of the dealing is calculated by reference to the ^*price (excluding wine tax and ^*GST) for which the contents were sold; and

(b) the parties have allocated a separate amount to the ^*container;

then the taxable value is ^*increased by so much of the value of the container as is recouped by the seller in connection with the sale of the contents.

(3) If the ^*taxable value of the dealing is not calculated as mentioned in subsection (2), then the taxable value is ^*increased by so much of the value of the ^*container as could reasonably be expected to have been recouped by you in connection with a hypothetical sale of the contents at the time of the actual ^*taxable dealing with the contents.

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

(1) If a ^*royalty is paid or payable, or likely to be paid or payable, in connection with any of the following events in respect of particular wine:

(a) the ^*manufacture of the wine;

(b) the ^*importation or ^*local entry of the wine;

(c) a sale of the wine;

then the ^*taxable value of any ^*taxable dealing with that wine that happens at or after that event includes the amount or value of the royalty.

(2) Royalty is any amount to the extent to which it is paid or payable (whether or not periodically) as consideration for any of the following things (or for the right to do them):

(a) doing anything that would be an infringement of copyright if it were done without the licence of the copyright owner;

(b) making, using, exercising or vending an invention (each of those terms having the meaning it has in the Patents Act 1990);

(c) using a design that is of a kind capable of being registered under the Designs Act 1906 (whether or not it is registered under that Act or under any other law);

(d) using a trade mark that is of a kind capable of being registered under the Trade Marks Act 1995 (whether or not it is registered under that Act or under any other law), but not including a mark that relates to a service;

(e) using confidential information;

(f) using machinery, implements, apparatus or other equipment;

(g) ^*supplying scientific, technical, industrial, commercial or other knowledge or information;

(h) supplying assistance that is ancillary to, and is supplied as a means of enabling the application or enjoyment of, any matter covered by paragraphs (a) to (g);

(i) a total or partial forbearance in respect of any matter covered by paragraphs (a) to (h).

Terms used in paragraph (a) of this definition have the same meaning as in the Copyright Act 1968.

9-75 Assessable dealing with wine in bond

If a ^*taxable dealing happens while the wine is in bond or otherwise subject to the control of ^*Customs, the ^*taxable value is ^*increased by the amount of ^*customs duty to which the wine would have been subject if it had been entered for home consumption under the Customs Act 1901 at the time of the taxable dealing.

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

This Subdivision does not add any amount to the ^*taxable value so far as it would already be included in the taxable value.

Part 3—Quoting

Division 13—Quoting for dealings in wine

13-1 What this Division is about

In certain circumstances you can quote for a dealing with wine. This is designed to avoid the wine tax becoming payable on sales preceding the last wholesale sale. (Under section 7-10, wine tax is not payable on a sale for which the purchaser has quoted.)

13-5 Standard grounds for quoting ABN

(1) You are entitled to quote your ^*ABN for a dealing with wine if, at the time of quoting, you have the intention of dealing with the wine in any of the following ways:

(a) selling the wine by ^*wholesale, or by ^*indirect marketing sale, while the wine is in ^*Australia;

(b) selling the wine, by any kind of sale, while it is in Australia (this ground is available only if you are mainly a wholesaler at the time of quoting);

(c) using the wine as a material in ^*manufacture or other treatment or processing, whether or not it relates to or results in other wine;

(d) making a ^*supply of the wine that will be ^*GST-free.

(2) However, you are not entitled to ^*quote unless you are ^*registered.

(3) For the purposes of paragraph (1)(b), you are mainly a wholesaler at the quoting time only if:

(a) ^*wholesale sales and ^*indirect marketing sales account for more than half of the total value of all sales of ^*assessable wine by you during the 12 months ending at the quoting time; or

(b) you have an expectation (based on reasonable grounds) that wholesale sales and indirect marketing sales will account for more than half of the total value of all sales of assessable wine by you during the 12 months starting at the quoting time.

For this purpose, the value of a sale of wine is the ^*price for which the wine is sold.

13-10 Additional quoting grounds in special circumstances

The Commissioner may (if you are ^*registered) authorise you to quote your ^*ABN in special circumstances in which you would not otherwise be entitled to quote.

13-15 Periodic quoting

(1) You may make a periodic ^*quote under this section for purchases that you propose to make from an entity (the supplier) during the period, not exceeding 12 months, covered by the periodic quote.

(2) If you make such a periodic ^*quote on or before the first day of the period to which the quote relates, you are treated as having quoted your ^*ABN for all purchases during the period from the supplier, other than purchases in respect of which you have notified the supplier in accordance with subsection (3).

(3) If you are not entitled to ^*quote for a particular purchase from the supplier during the period, you must notify the supplier of that fact at or before the time of the purchase. The notification must be in the ^*approved form.

(4) You are guilty of an offence if you contravene subsection (3).

Maximum penalty: 20 penalty units.

Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

(5) Section 13-30 applies to a ^*quote that you are treated as having made under subsection (2) of this section for a particular purchase.

13-20 Manner in which quote must be made

(1) A ^*quote (including a periodic quote) must be made in the ^*approved form.

(2) A ^*quote for a dealing is not effective unless it is made at or before the time of the dealing.

13-25 Incorrect quote nevertheless effective for certain purposes

If you ^*quote in circumstances in which you are not entitled to quote, or the quote is not in the ^*approved form, the quote is nevertheless:

(a) effective for the purposes of Subdivision 31-D; and

(b) effective for the purpose of section 7-10, unless section 13-30 applies.

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

A ^*quote is not effective, so far as it would have resulted in an exemption or a ground for a ^*CR6 wine tax credit, if at the time of the quote the entity to which the quote is made has reasonable grounds for believing that:

(a) you are not entitled to quote in the particular circumstances; or

(b) the quote is not made in the ^*approved form; or

(c) the quote is false or misleading in a material particular (either because of something stated in the quote or something left out).

13-35 Improper quoting is an offence

You must not, in relation to any dealing with wine:

(a) quote an ^*ABN for the purposes of this Act:

(i) in circumstances in which you are not entitled to quote; or

(ii) in contravention of subsection 13-20(1); or

(b) in any other way falsely quote an ABN.

Maximum penalty: 20 penalty units.

Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2: See section 4AA of the Crimes Act 1914 for the current value of a penalty unit.

Note 3: Section 23 of the A New Tax System (Australian Business Number) Act 1999 provides penalties for misuse of ABNs.

Part 4—Wine tax credits

Division 17—Wine tax credits

17-1 What this Division is about

Wine tax credits can arise in a number of circumstances. Generally speaking, they prevent wine tax applying more than once to the same goods.

Note: If you are in the GST system, wine tax credits are included in your net amounts (see Part 5). If you are not in the GST system, you can claim wine tax credits under this Part.

17-5 Wine tax credit entitlements

(1) The ^*Wine Tax Credit Table sets out the situations in which you are entitled to a ^*wine tax credit.

(2) You are not entitled to a ^*wine tax credit for an amount of tax for which a wine tax credit entitlement has previously arisen (whether for you or another entity).

(3) You are not entitled to a ^*wine tax credit unless you make a claim for the wine tax credit under section 17-10.