Commonwealth Numbered Acts

SALES TAX ASSESSMENT (No. 7) AMENDMENT ACT 1978 No. 203, 1978 - SECT 3

3. Section 4 of the Principal Act is amended-

(a) by omitting from sub-section (1) ''For the purposes of this Act'' (first
occurring) and substituting ''Subject to sub-section (3) of this section, to
section 4A and to sub-sections (5B) and (5C) of section 18 of the Sales Tax
Assessment Act (No. 1) 1930 in their application in accordance with section 12
of this Act, for the purposes of this Act''; and

   (b)  by omitting sub-section (3) and substituting the following
        sub-sections:

''(2) Where-

   (a)  goods (in this sub-section referred to as the 'relevant goods')
        imported into Australia have been sold after 20 September 1978 by a
        person other than the importer of the goods (being a person who is a
        registered person or a person required to be registered) to an
        unregistered person or to a registered person who has not quoted his
        certificate in respect of the purchase of the goods;

   (b)  the Commissioner is satisfied that, having regard to any connection
        between the vendor and the purchaser of the relevant goods or to any
        other relevant circumstances (including circumstances arising out of
        any agreement entered into between the vendor and the purchaser, or
        out of any other agreement, that was related, directly or indirectly,
        to the sale of the goods), the vendor and the purchaser were not
        dealing with each other at arm's length in relation to the
        transaction; and

   (c)  the Commissioner is also satisfied-

        (i)    that the amount for which the relevant goods were sold is less
               than the amount (in this sub-section referred to as the 'arm's
               length price') for which, in the opinion of the Commissioner,
               the relevant goods could reasonably be expected to have been
               sold if the vendor and the purchaser had been dealing with each
               other at arm's length in relation to the transaction; or

        (ii)   that-

                (A)  the purchaser could have purchased identical goods from
                     another person (not being an importer of identical goods)
                     by wholesale and obtained delivery of the identical goods
                     at or about the time when the purchaser obtained delivery
                     of the relevant goods; and

                (B)  the amount for which the relevant goods were sold is less
                     than the amount (in this sub-section referred to as the
                     'alternative price') for which, in the opinion of the
                     Commissioner, the identical goods could reasonably be
                     expected to have been sold to the purchaser,

the Commissioner shall alter the sale value of the relevant goods to the
amount ascertained in accordance with the following paragraphs:

   (d)  if the Commissioner is satisfied as to the matter mentioned in
        sub-paragraph (i) of paragraph (c) but not as to the matters mentioned
        in sub-paragraph (ii) of that paragraph-an amount equal to the arm's
        length price;

   (e)  if the Commissioner is satisfied as to the matters mentioned in
        sub-paragraph (ii) of paragraph (c) but not as to the matter mentioned
        in sub-paragraph (i) of that paragraph-an amount equal to the
        alternative price;

   (f)  if the Commissioner is satisfied as to the matter mentioned in
        sub-paragraph (i) of paragraph (c) and also as to the matters
        mentioned in sub-paragraph (ii) of that paragraph-an amount equal to
        the lesser of-

        (i)    the arm's length price; and

        (ii)   the alternative price.

''(3) Where the Commissioner alters the sale value of goods in pursuance of
sub-section (2), the sale value so altered shall be the sale value of the
goods for the purposes of this Act.

''(4) For the purposes of this section, the sale value of goods shall not be
increased by any amount payable in respect of sales tax, but, when the goods
are sold either in bond or while otherwise subject to the control of the
Customs, the sale value shall be increased by the amount of any duty of
Customs to which the goods would be subject if entered for home consumption at
the time at which they are sold.

''(5) In this section-

   (a)  'agreement' means any agreement, arrangement or understanding-

        (i)    whether formal or informal;

        (ii)   whether expressed or implied; or

        (iii)  whether or not enforceable, or intended to be enforceable, by
               legal proceedings; and

   (b)  a reference to identical goods shall be read as a reference to goods
        identical in all material respects with the goods in relation to which
        the expression is used.''.