SALES TAX

Evening Post, Volume CXVI, Issue 147, 19 December 1933, Page 4

SALES TAX

SOME [AMENDMENTS

$ POSITION OF CROWN

While no major alterations in, the »ystem of collection, of sales ■tux are proposed in the Sales "fax Amendment Bill, introduced in tho House of Representatives last night, there are &' number of changes in tho original legislation. Most of those havo been found to bo necessary as the result of the Customs Department's experience in administering tho Act.

Under the. original Act, sales tax could not bo 'recovered by wholesalers who sold taxable goods to the Crown: Experience showed that in fairness to wholesalers it was necessary to place the Crown in the same position as other purchasers and this is provided for in tho Bill. Tho clause is made retrospective to February 9,^1933, tho day on which the original Act operated.

Provision is mado for tho inclusion in. the term"manufacturer"-or "manufacturing wholesaler" of those persons who make up material tho property of some other person and then return the completed article to tho owner, making a charge for tho manufacturing of the article. The contractor is to be liable for the sales tax and tho tax is to be- computed on the following basis: ■where the,goods manufactured by the contractor are mado! wholly from taxable materials the sale value is to be deemed tho amount charged by the contractor for tho work dona by him.

Another clause wakes it clear' that sales tax is payable by a person who manufactures goods/ for the. erection or" construction of, buildings in easos where such goods arc of a like class to> those sold by other manufacturers in the ordinary coiirso of business. Builders making their own joinery or fabricating their own steelwork will be placed on the same footing respecting sales tax as joiners and engineers •who mako similar goods for sale. Many difficulties havo arisen where taxable goods liavo been sold by retailers to ' wholesalers ""f or resale by them. The Bill provides that when taxable 'goods are sold by a retailer to a wholesaler for resale or to be used in the manufacture of goods for sale, the Hvholcsaler may deduc.t from the sale'yalue of the goods sold by him in any one month the tax inclusive price paid or.to be paid',during that month for taxable goods purchased from retailers. ■ The wholesaler will pay tax on the price at,■which-'ho.sells the goods. Similar provision is made where a manufacturing retailer purchases taxable materials from another retailer. Legislation is also contained in the Bill making clear tho position _of receivers under the Act. Tho Bill provides that on appointment, a receiver must give notice of tho fact to the Comptroller of Customs and, before disposing of any of tho assets of the taxpayer, set aside out of the assets such, sum as appears to tho Comptroller to be sufficient to provide for any sales tax payable or likely to become payable. Default on the part of a receiver to .comply with these provisions will make him personally liable

The difficulties Which have arisen ■between traders and the Department concerning the monthly accounting periods will., be straightened out by the inclusion of a clause which enables the Collector of Customs to accept returns in respect of tho ordinary monthly accounting periods of merchants instead of calendar months. Tor these purposes, the last day of the accounting period is to be considered as the end of the month. • Provision is made for tho payment of sales tax on imported goods to be paid at the time of entry for home consumption,'or if the goods have been imported without payment of the tax properly payable, the tax shall be deemed t& have become payablo as soon as an offence in respect of these goods has been committed under tho Customs "Act. It is also proposed to make pro* vision for the Collector of Customs, to ,sue for sales tax which has become payable. .