SALES TAX ASSESSMENT ACT 1992 (Repealed)

PART 4 - CREDITS

SECTION 58 (Repealed by 101 of 2006)   CLAWBACK OF CR9 CREDIT ON LATER SALE OF DEFECTIVE GOODS  

58(1)  [Claimant liable if defective goods later sold]  

A credit under CR9 for tax on goods that were used to replace the whole or part of defective goods is subject to the condition that the claimant is liable to pay an amount under this section if the claimant later sells the defective goods.

58(2)  [Amount payable]  

Subject to subsection (2A), the amount payable by the claimant is calculated using the following formula:

                 Consideration for later sale of
                         defective goods
CR9 credit  x  -----------------------------------------
                Taxable value of  +   Tax payable on the
                earlier dealing       earlier dealing
                    with the             with the
                defective goods       defective goods

      

58(2A)  [Amount payable reduced by tax borne]  

If the claimant has borne tax on goods that were used as raw materials in repairing the defective goods, the amount payable by the claimant is the amount calculated using the formula in subsection (2) reduced by the amount of the tax borne.

58(3)  [Amount treated as tax payable]  

The amount is to be treated as if it were tax that became payable by the claimant at the time of the later sale of the defective goods, and were due for payment as follows:

(a)  if the claimant is a quarterly remitter for the sales tax quarter in which the later sale happened - 21 days after the end of that quarter;

(b)  in any other case - 21 days after the end of the month in which the later sale happened. [The main effect of treating the amount as if it were tax is to apply the collection and recovery rules in Part 5.]