Victorian Consolidated Legislation

State Owned Enterprises Act 1992 - SECT 88

Tax equivalent

88. Tax equivalent



(1) If the Treasurer directs a State owned enterprise to comply with this
section in respect of a financial year or other period, the State owned
enterprise must, in respect of that year or period, pay to the Treasurer, in
such manner and at such times as the Treasurer determines in accordance with
the Treasurer's instructions, for payment into the Consolidated Fund-

   (a)  such amounts as are determined by the Treasurer in accordance with the
        Treasurer's instructions, not exceeding the amount that would be
        payable by the State owned enterprise under the law of the
        Commonwealth (other than a GST law) if it were liable to pay taxes
        under that law.



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(2) A State owned enterprise is not required to make payments under subsection
(1) to the extent that it is, or becomes, liable to pay the Commonwealth taxes
referred to in subsection 1(a).

(3) All relevant determinations, whether by way of interpretation, extension,
penalty, refund or otherwise that the Commonwealth Commissioner of Taxation
would be empowered to make if the laws of the Commonwealth applied may be
made, in accordance with the Treasurer's instructions, by the Treasurer.

(3A) A State owned enterprise may request the Treasurer to review a
determination made in respect of it under this section.

(3B) A State owned enterprise that makes a request under subsection (3A)-

   (a)  must pay to the Treasurer such fee (if any) as is determined by the
        Treasurer in respect of the review; and

   (b)  must pay to the Treasurer an amount equal to the cost of the review,
        including the cost of obtaining advice from other persons, or such
        part of those costs as the Treasurer determines.

(3C) If, as a result of the review of a determination, the Treasurer amends
the determination, the Treasurer may refund to the State owned enterprise such
part of any fee and amounts paid by it under subsection (3B).

(3D) The Treasurer may at any time direct a State owned enterprise-

   (a)  to enter the NTER; or

   (b)  to withdraw from the NTER.

(3E) Subsection (3A) does not apply to a State owned enterprise that is the
subject of a direction under subsection (3D)(a).

(4) The Treasurer may, by instrument, delegate to-

   (a)  any person or class of persons employed in the administration of this
        Act, any power of the Treasurer under this section, other than this
        power of delegation;

   (b)  any person or class of persons employed or engaged in the
        administration of the NTER, any power of the Treasurer under this
        section in relation to a State owned enterprise that is the subject of
        a direction under subsection (3D)(a), other than-

   (i)  this power of delegation; or

   (ii) the power in subsection (1) to direct a State owned enterprise to
        comply with this section; or

   (iii) the power to make a direction under subsection (3D).

(5) A State owned enterprise (within the meaning of section 3) is not exempt
from tax under any Act by reason only that it is an instrumentality of the
State.

(5A) The Consolidated Fund is hereby appropriated to the extent necessary to
enable the Treasurer to make refunds in accordance with this section.

(6) In this section-

GST law means any of the following Acts of the Commonwealth-

   (a)  A New Tax System (Goods and Services Tax) Act 1999;

   (b)  A New Tax System (Goods and Services Tax Imposition-Customs) Act 1999;

   (c)  A New Tax System (Goods and Services Tax Imposition-Excise) Act 1999;

   (d)  A New Tax System (Goods and Services Tax Imposition-General) Act 1999;

NTER means the National Tax Equivalent Regime referred to in clause 24 of the
Intergovernmental Agreement on the Reform of Commonwealth-State Financial
Relations set out in the Schedule to the
National Taxation Reform (Consequential Provisions) Act 2000;

State owned enterprise includes a statutory corporation in respect of which a
declaration under section 88A is in force;

Treasurer's instructions means written guidelines issued from time to time by
the Treasurer for the purposes of this section.