Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 23

Grouping of financial institutions

23. Grouping of financial institutions



(1) For the purposes of this Act-

   (a)  where a financial institution, being a corporation, is related, within
        the meaning of section 12, to another corporation (in this section
        referred to as a related corporation);

   (b)  where an employee of a financial institution performs, or two or more
        employees of a financial institution perform, duties for or in
        connexion with a trade, business or profession carried on by the
        financial institution and another person (in this section referred to
        as an associate) whether or not also with another person or other
        persons; or

   (c)  where-



   (i)  an employee of a financial institution is, or two or more employees of
        a financial institution are, employed solely or mainly to perform
        duties for or in connexion with a trade, business or profession
        carried on by another person or other persons (which other person is,
        or other persons are, in this section referred to as an associate); or

   (ii) a financial institution has, in respect of the employment of, or the
        performance of duties by, one or more of its employees, an agreement,
        arrangement or undertaking (whether formal or informal and whether
        expressed or implied) with another person or other persons (which
        other person is, or other persons are, in this section referred to as
        an associate) relating to a trade, business or profession carried on
        by the associate and another person or other persons-

unless the financial institution satisfies the Commissioner that the trade,
business or profession in which the employee is, or the employees are,
employed is carried on independently of, and is not connected with, the
carrying on of a trade, business or profession carried on by the associate
(whether or not with another person or other persons) and that the trade,
business or profession in which the employee is, or the employees are,
employed is not carried on with an intention either directly or indirectly of
avoiding or evading the payment of duty whether by the financial institution
or by another person-

the financial institution, the related corporations and the associates are
together referred to in this Act as a group and the financial institution,
each related corporation and each associate is a member of that group.



(2) Where a financial institution is a member of a group and the financial
institution or another member of that group is a member of another group, a
person that is a member of that other group shall for the purposes of this
Act-

   (a)  be deemed to be a member of the first-mentioned group; and

(b) be referred to as an "associate"-

unless that person satisfies the Commissioner that the trade, business or
profession carried on by that person is carried on independently of, and is
not connected with the carrying on of a trade, business or profession carried
on by a member of the first-mentioned group and that that trade, business or
profession is not carried on with an intention either directly or indirectly
of avoiding or evading the payment of duty by any person.

(3) Where there is a group of which a financial institution is a member,
section 18 shall have effect in relation to-

   (a)  each receipt of money by the financial institution;

   (b)  each receipt of money by a related corporation in the group; and

   (c)  each receipt of money by an associate in the group-

(other than receipts of money by a related corporation or an associate in the
course of a trade, business or profession which the Commissioner is satisfied
is carried on independently of, and is not connected with, the carrying on of
a trade, business or profession carried on by the financial institution, a
related corporation in the group or by another associate in the group and
which the Commissioner is satisfied is not carried on with an intention either
directly or indirectly of avoiding or evading the payment of duty by a person)
as if-

   (d)  a reference in that section to the receipt of money were a reference
        to each such receipt by the financial institution, such a related
        corporation or such an associate; and

   (e)  a reference to a financial institution were a reference to a member of
        the group nominated or appointed under subsection (5) for the purposes
        of this subsection.

(4) Where there is a group of which a financial institution is a member,
section 33 shall have effect as if-

   (a)  a reference in that section to the total dutiable receipts of the
        financial institution were a reference to the total of the dutiable
        receipts of the financial institution, a related corporation in the
        group and an associate in the group (other than receipts of money by a
        related corporation or an associate in the course of a trade, business
        or profession which the Commissioner is satisfied is carried on
        independently of, and is not connected with, the carrying on of a
        trade, business or profession carried on by the financial institution,
        a related corporation in the group or by another associate in the
        group and which the Commissioner is satisfied is not carried on with
        an intention either directly or indirectly of avoiding or evading the
        payment of duty by any person); and

   (b)  the first reference in the section to a financial institution were a
        reference to the financial institution, a related corporation in the
        group or an associate in the group.

(5) Where, in respect of a group-

   (a)  a member of the group is nominated by members of the group and notice
        of the person nominated and persons by whom the nomination is made is
        given to the Commissioner, the nomination shall be deemed to have been
        made on the first day of the month in which the notice is given or the
        date when the member became a member of the group, whichever is the
        later, and the person so nominated continues to be the person
        nominated for the purposes of subsection (3) until-

   (i)  notice of the nomination of another member of the group is given to
        the Commissioner, being a notice that includes a revocation of, or
        objection to, the nomination of the first-mentioned person;

   (ii) the nomination is revoked by members of the group by notice given to
        the Commissioner or by direction of the Commissioner; or

   (iii) notice of objection to the nomination is given to the Commissioner by
        a member of the group; or

   (b)  the Commissioner appoints a member of the group, the appointment shall
        be deemed to have been made on the date specified in the appointment
        (being a date when the member was a member of the group) and the
        person so appointed continues to be the person appointed for the
        purposes of subsection (3) until the appointment is revoked by the
        Commissioner.

(6) A nomination or appointment under subsection (5) shall be deemed to be a
nomination or appointment in respect of a group notwithstanding that at the
time the nomination or appointment is made the identity of one or more members
of the group is not known or, in the case of a nomination, one or more members
do not join in making nomination and to continue to be a nomination or
appointment in respect of the group notwithstanding that the membership of the
group alters.

(7) Where, for the purposes of subsection (3), the Commissioner-

   (a)  appoints or revokes the appointment of a member of a group; or

   (b)  directs that a nomination of a member of a group is revoked-

he shall give notice of the appointment or revocation to each member of the
group whose identity he knows.

(8) Nothing in this section requires the Commissioner to appoint a member of a
group for the purposes of subsection (3) and, where he makes or revokes such
an appointment, he is not liable to any person in any manner by reason of the
appointment or revocation.