New South Wales Consolidated Acts

INSURANCE PROTECTION TAX ACT 2001 - SECT 8

8 Apportionment of tax between insurance companies

(1) On or before 1 September in each year, the Chief Commissioner must:

(a) make an assessment of the liability of each insurer to pay the tax imposed by this Act for that year, and

(b) issue a notice of assessment to the insurer of its liability.

(2) The liability of an insurer to pay the tax imposed by this Act for a year is to be assessed in accordance with the formula:

"A" is the liability of the insurer to pay the tax imposed by this Act for the year, and
"B" is the total amount of all premiums received by the insurer for general insurance in the preceding year less the total amount of any refunds of premiums made by it in relation to general insurance in the preceding year, and
"C" is the total amount of all premiums received by all insurers for general insurance in the preceding year less the total amount of any refunds of premiums made by those insurers in relation to general insurance in the preceding year, and
"D" is the total amount of tax imposed by this Act for the year as determined in accordance with section 5.

(3) If an insurer fails to lodge a return as required by section 6, the Chief Commissioner:

(a) may make an estimate of:

(i) the total amount of all premiums received by the insurer for general insurance in the preceding year less the total amount of any refunds of premiums made by it in relation to general insurance in the preceding year, and

(ii) the total amount of all premiums received by all insurers for general insurance in the preceding year less the total amount of any refunds of premiums made by those insurers in relation to general insurance in the preceding year, and

(b) may use those estimates for the purposes of subsection (2).

(4) If a single return for a year has been lodged on behalf of two or more insurers who are related bodies corporate within the meaning of the Commonwealth Corporations Act 2001 , the liability of those insurers to pay the tax imposed by this Act for the year is to be assessed as if those insurers were a single insurer.

(5) Insurers who are assessed for tax in accordance with subsection (4) are jointly and severally liable for the tax.