South Australian Consolidated Acts

DEBITS TAX ACT 1994 - SECT 8

8—Imposition of tax

        (1)         Tax is imposed in respect of—

            (a)         each taxable debit of not less than $1 made to a taxable account; and

            (b)         each eligible debit of not less than $1 made to an exempt account; and

            (c)         each eligible debit of not less than $1 made to an account kept outside South Australia if—

                  (i)         at the time when the debit is made, the person in whose name, or either or any of the persons in whose names, the account is kept is a resident of South Australia; and

                  (ii)         it would be concluded that the account was used in connection with the transaction that resulted in the debit for the purpose, or for purposes that included the purpose, of enabling—

                        (A)         the person in whose name, or either or any of the persons in whose names, the account is kept; or

                        (B)         any other person,

to avoid liability for payment of the tax that would have been imposed if the debit that resulted from that transaction had been made to an account kept in South Australia.

        (2)         A reference in this section to a debit made to an account kept outside South Australia includes a reference to a debit made to an account (in this subsection called a "customer's account") kept outside South Australia with a building society, credit union or similar body (including an account kept by way of withdrawable share capital in, or money deposited with, the body) where—

            (a)         another account is kept with a financial institution in the name of the body; and

            (b)         the customer's account has characteristics such that a cheque may be drawn on the financial institution by the body and, at a time when it is incomplete, be delivered by the body to a customer under an agreement under which—

                  (i)         the customer is authorised to fill up the cheque; and

                  (ii)         the body is authorised, for the purpose of making a payment to the financial institution to enable the financial institution to honour the cheque, to debit the customer's account.

        (3)         The conclusion referred to in subsection (1)(c)(ii) may not be drawn if, under a law of the place where the account is kept, the person concerned would be liable, in relation to the use of the account, to pay tax of a similar kind to the tax imposed by this section.