INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART VI - COLLECTION AND RECOVERY OF TAX  

Division 6A - Deductions from certain repayments of farm management deposits  

Note:

In addition to the obligations imposed on financial institutions in relation to farm management deposits under this Division, they are required to report information about such deposits to the Department of Primary Industries and Energy under section 264AA .

SECTION 221ZXE   DEDUCTION EXEMPTION CERTIFICATES  

221ZXE(1)   Depositor may request deduction exemption certificate.  

The depositor of a farm management deposit that is to be repaid in whole or part may request the Secretary to the Department of Primary Industries and Energy to issue a certificate (a deduction exemption certificate ) stating that no amount is to be deducted under section 221ZXB in relation to the repayment.

221ZXE(2)   Ground for certificate.  

The request may only be made on the ground that the owner is experiencing serious financial difficulties.

Note:

A depositor who makes a statement that is false or misleading in a material particular in such a request will commit an offence against section 8K , 8N or 8P of the Taxation Administration Act 1953 .

221ZXE(3)   Formal requirements.  

The request must be in writing and be accompanied by evidence, of a kind required by the Secretary, of the ground on which it is made.

221ZXE(4)   Decision etc. within 1 month.  

The Secretary must, within 1 month after the request is made:

(a) decide whether or not to issue the certificate, according to whether he or she considers the ground on which the request was made is established or not; and

(b) either issue the certificate or advise the depositor in writing of his or her decision not to issue the certificate.

221ZXE(5)   Secretary to have regard to guidelines.  

In making the decision whether or not to issue the certificate, the Secretary must have regard to the guidelines formulated by the Minister for Primary Industries and Energy under subsection 221ZXF(1) .

221ZXE(6)   AAT review.  

The depositor may apply to the Administrative Appeals Tribunal for review of a decision of the Secretary not to issue the certificate.

221ZXE(7)   Refund of deduction under section 221ZXB .  

If:

(a) the Administrative Appeals Tribunal decides, on the application, that the Secretary should have issued the certificate; and

(b) the financial institution makes the repayment concerned before the certificate issued as a result of the decision of the Tribunal is given to the financial institution; and

(c) in accordance with subsection 221ZXB(2) or (3) , the financial institution deducts a percentage of the stated assessable FMD amount or of the repayment; and

(d) the depositor gives the Commissioner a copy of the certificate issued as a result of the decision of the Tribunal before the Commissioner has made, or amended, an assessment in relation to the owner of the deposit, for the year of income in which the repayment is made;

the following provisions apply:

(e) the Commissioner must refund to the depositor the amount deducted under subsection 221ZXB(2) or (3) ;

(f) for the purposes of section 221ZXK , the amount refunded is taken never to have been deducted under subsection 221ZXB(2) or (3) .

221ZXE(8)   Refund payable out of CRF.  

The refund is payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

221ZXE(9)   Delegation of deduction exemption certificate powers.  

The Secretary may, by writing signed by the Secretary, delegate to an officer of the Department of Primary Industries and Energy his or her powers under this section in respect of certificates.