South Australian Consolidated Acts South Australian Consolidated Acts13—Certificates of exemption from tax
(1) Where an
account holder in respect of an account kept in South Australia applies to the
Commissioner in accordance with this section for the issue of a
certificate of exemption in relation to the account—
(a) if
the Commissioner is satisfied that all debits made, or to be made, to the
account are, or are likely to be, either excluded debits or exempt
debits—the Commissioner must issue a certificate of exemption in
relation to the account; or
(b) if
the Commissioner is not so satisfied—the Commissioner must refuse the
application and must cause notice in writing of the decision in relation to
the application to be served, by post or otherwise, on the person who made the
application.
(2) A
certificate of exemption remains in force until the expiration of the day
specified in the certificate as the day of expiry of the certificate or, if no
day is specified as the day of expiry of the certificate, until the
certificate ceases to be in force by virtue of subsection (6).
(3) Where the
Commissioner—
(a) is
notified by the account holder, or either or any of the account holders, of an
exempt account that an eligible debit has been, or is to be, made to the
account; or
(b)
becomes satisfied that an eligible debit has been, or is to be, made to an
exempt account,
the Commissioner has a discretionary power to revoke the certificate by notice
in writing.
(4) Subject to
subsection (5), where—
(a) an
eligible debit has been made to an exempt account; or
(b) the
account holder (or one or more of the account holders) of an exempt account
expects (or expect) that an eligible debit will be made to the exempt account
within the ensuing period of 30 days,
the account holder (or each of the account holders) of the exempt account
must, within 7 days, notify the Commissioner in writing accordingly.
Maximum penalty: $10 000.
(5) Where—
(a)
there are two or more account holders of an exempt account; and
(b) one
of those account holders notifies the Commissioner in accordance with
subsection (4) of an eligible debit to, or expected to be made to, the
exempt account,
the other account holder (or account holders) are not required to notify the
Commissioner under that subsection of the eligible debit.
(5a) If the
Commissioner is not notified of the making of an eligible debit to an
exempt account as required under subsection (4), then, for the purposes of
Part 5 of the Taxation Administration Act 1996 —
(a) that
failure is to be taken to have been a tax default; and
(b)
interest and penalty tax (if any) are to be calculated by reference to the tax
payable on the eligible debit as if it had been required to be paid within 7
days after the eligible debit was made to the exempt account.
(6) Where the
Commissioner has revoked a certificate of exemption in relation to an account,
the Commissioner must serve notice of that revocation—
(a) on
the account holder (or, if there are two or more account holders, on each of
them); and
(b) on
the financial institution with which the account is kept,
and, despite the fact that any day of expiry shown on the certificate has not
occurred, the certificate ceases to be in force in relation to the account
when the notice is served on the financial institution.
(7) An application
made for the issue of a certificate of exemption must be in writing and the
person making the application must furnish such information as the
Commissioner requires in connection with the consideration of that
application.