Commonwealth Numbered Acts

SALES TAX ASSESSMENT (No. 8) AMENDMENT ACT 1978 No. 204, 1978 - SECT 3

3. Section 4 of the Principal Act is amended-

(a) by omitting ''For the purposes of this Act'' 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 adding at the end thereof the following sub-sections:

''(2) Where-

   (a)  goods (in this sub-section referred to as the 'relevant goods')
        imported into Australia that have been purchased after 20 September
        1978 by a registered person who has quoted his certificate in respect
        of those goods have been applied by the purchaser to his own use;

   (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 purchased 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 purchased 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 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 purchased 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 purchased by 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) In sub-section (2)-

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

        (i)    whether formal or informal;

        (ii)   whether express 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.''.