New South Wales: Taxation Administration Act 1996 (NSW)

Taxation Administration Act 1996 No 97 An Act to make general provision with respect to the administration and enforcement of the other taxation laws. Part 1 Preliminary 1 Name of Act This Act is the Taxation Administration Act 1996. 2 Commencement This Act commences on a day or days to be appointed by proclamation. 3 Definitions (1) In this Act— assessment means an assessment made by the Chief Commissioner under Part 3 of the tax liability of a person under a taxation law, and includes— (a) a reassessment and a compromise assessment under Part 3, and (b) an assessment by the Supreme Court or the Civil and Administrative Tribunal on an application for a review. authorised officer means a person who is an authorised officer under section 68. Chief Commissioner means the Chief Commissioner referred to in section 60. Commissioner means the Commissioner referred to in section 64. exercise a function includes perform a duty. function includes a power, authority or duty. Hardship Review Board means the Hardship Review Board constituted under the State Debt Recovery Act 2018. investigation means an investigation under Division 2 of Part 9. premises includes land, a vehicle, a vessel and an aircraft. recognised revenue law has the meaning given by section 80A. record means— (a) a documentary record, or (b) a record made by an electronic, electromagnetic, photographic or optical process, or (c) any other kind of record. return means a return, statement, application, report or other record that— (a) is required or authorised under a taxation law to be lodged by a person with the Chief Commissioner or a specified person, and (b) is liable to tax or records matters in respect of which there is or may be a tax liability. review means a review by the Supreme Court, or an administrative review by the Civil and Administrative Tribunal, on an application made under Division 2 of Part 10. tax means a tax, duty, contribution or levy under a taxation law, and includes— (a) interest and penalty tax under Part 5, and (a1) a penalty under section 106KA, and (b) any other amount paid or payable by a taxpayer to the Chief Commissioner under a taxation law. tax debt—see section 44. taxation law has the meaning given by section 4. Note. See also section 5 (Application of Act to State tax-equivalent regime). tax default means a failure by a taxpayer to pay, in accordance with a taxation law, the whole or part of tax that the taxpayer is liable to pay. tax officer means— (a) the Chief Commissioner, or (b) the Commissioner, or (c) an authorised officer, or (d) any other person engaged (whether as an officer or employee or otherwise) in the administration or enforcement of a taxation law. taxpayer means a person who has been assessed as liable to pay an amount of tax, who has paid an amount as tax or who is liable or may be liable to pay tax. this jurisdiction means New South Wales. trustee includes— (a) a person who is a trustee under an implied or constructive trust, and (b) in relation to a deceased person—an executor of the will, or an administrator of the estate, of the deceased person, and (c) a receiver or manager of the property of a company, or a liquidator of a company for the purpose of its winding up, and (d) a receiver, guardian, committee or manager of the property of a person under a legal or other disability, and (e) a person having possession, control or management of a business or property of a person who is under a legal or other disability, and (f) any person acting in a fiduciary capacity. Note. The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act. (2) Notes in the text of this Act do not form part of the Act. 4 Meaning of "taxation laws" The following are taxation laws for the purposes of this Act— this Act Betting Tax Act 2001 Duties Act 1997 Emergency Services Levy Act 2017 Gaming Machine Tax Act 2001 Health Insurance Levies Act 1982 Insurance Protection Tax Act 2001 Land Tax Act 1956 Land Tax Management Act 1956 Parking Space Levy Act 2009 Payroll Tax Act 2007 Payroll Tax Deferral (BlueScope Steel) Act 2015 Property Tax (First Home Buyer Choice) Act 2022 a regulation under any of those Acts. Note. The Fire and Emergency Services Levy Act 2017 applies parts of this Act to the levy payable under that Act if the responsibility for levy recovery is transferred to the Chief Commissioner or if the Chief Commissioner requires a waived amount of the levy to be repaid. The Fire and Emergency Services Levy Act 2017 also applies parts of this Act to the collection instalments payable by a council under that Act as if those instalments were a tax. In addition, some of the provisions of this Act apply to the contributions payable by councils under the following— (a) Part 5 of the Fire and Rescue NSW Act 1989, (b) Part 5 of the Rural Fires Act 1997, (c) Part 5A of the State Emergency Service Act 1989. 5 Application of Act to relevant tax-equivalent regime (1) For the purpose of the administration and enforcement of a relevant tax-equivalent regime, the provisions of section 5.3 of the Government Sector Finance Act 2018, and any other provisions of that Act or directions or regulations under that Act, insofar as they relate to the relevant tax-equivalent regime, are taken to be a taxation law. (2) To avoid doubt, amounts payable as tax-equivalents under a relevant tax-equivalent regime in accordance with section 5.3 of the Government Sector Finance Act 2018 are taxes for the purposes of this Act. (3) Part 10 (Objections and reviews) does not apply in respect of an assessment of liability under a relevant tax-equivalent regime under section 5.3 of the Government Sector Finance Act 2018. (4) In this section— relevant tax-equivalent regime has the meaning as in section 5.3 of the Government Sector Finance Act 2018. 5A Application of Act to community development levy (1) For the purpose of the administration and enforcement of the scheme for the levying and payment of the community development levy under the Aboriginal Land Rights Act 1983, Division 4A of Part 2 of that Act and any regulations made under that Division, are taken to be a taxation law. (2) To avoid doubt, amounts payable for the community development levy under that Act are taxes for the purposes of this Act (other than Part 4). 5B Application of Act to royalties (1) For the purpose of the administration and enforcement of legislative schemes for the payment of royalties to the Crown, the following provisions are taken to be taxation laws— (a) Part 14 of the Mining Act 1992, (b) Divisions 2 and 3 of Part 4.4 of the Offshore Minerals Act 1999, (c) the provisions of Division 7 of Part 4 of the Petroleum (Offshore) Act 1982 to the extent that those provisions relate to royalties under that Act, (d) Part 7 of the Petroleum (Onshore) Act 1991, (e) any other provisions of the Acts referred to in paragraphs (a)–(d), or of the regulations under those Acts, to the extent that they relate to royalties. (2) Royalty is taken to be a tax for the purposes of this Act. (3) In this section— royalty means royalty payable under— (a) the Mining Act 1992, or (b) the Offshore Minerals Act 1999, or (c) the Petroleum (Offshore) Act 1982, or (d) the Petroleum (Onshore) Act 1991. 5C Application of Act to passenger service levy (1) For the purpose of the administration and enforcement of the scheme for the levying and payment of the passenger service levy under the Point to Point Transport (Taxis and Hire Vehicles) Act 2016, Schedule 4 to that Act and any regulations made under that Schedule, are taken to be taxation laws. (2) To avoid doubt, amounts payable for the passenger service levy under that Act are taxes for the purposes of this Act (other than Division 2 of Part 7). 6 Act binds the Crown (1) This Act binds the Crown in right of this jurisdiction and, in so far as the legislative power of the Legislature of this jurisdiction permits, the Crown in all its other capacities. (2) This section does not affect the liability of the Crown to tax under another taxation law. Part 2 Purpose of Act and relationship with other taxation laws 7 Purpose of Act and relationship with other taxation laws (1) The purpose of this Act is to make general provision with respect to the administration and enforcement of the other taxation laws. (2) The other taxation laws include provisions with respect to— (a) the imposition of tax and its payment, and (b) exceptions to and exemptions from liability to the tax, and (c) entitlements to refunds. (3) This Act includes general provisions with respect to— (a) assessment and reassessment of tax liability, and (b) obtaining refunds of tax, and (c) imposition of interest and penalty tax, and (d) approval of special tax return arrangements, and (e) collection of tax, and (f) record keeping obligations of taxpayers and general offences, and (g) tax officers and their investigative powers and secrecy obligations, and (h) objections and reviews, and (h1) tax avoidance schemes, and (h2) the prohibition on the use of confidential tax information, and (i) miscellaneous matters such as service of documents, corporate criminal liability and evidence. Part 3 Assessment of tax liability 8 General power to make assessment (1) The Chief Commissioner may make an assessment of the tax liability of a taxpayer. (2) An assessment of a tax liability may consist of a determination that there is not a particular tax liability. (3) For the avoidance of doubt, an assessment of tax liability is taken to have been made when the Chief Commissioner calculates the tax liability of a taxpayer based on a return under the Payroll Tax Act 2007 or any other Act prescribed by the regulations for the purposes of this subsection (whether or not the Chief Commissioner issues a notice of assessment as a result of that calculation or otherwise notifies the taxpayer of the calculation). 9 Reassessment (1) The Chief Commissioner may make one or more reassessments of a tax liability of a taxpayer. (2) A reassessment of a tax liability is to be made in accordance with the legal interpretations and assessment practices generally applied by the Chief Commissioner in relation to matters of that kind at the time the tax liability arose except to the extent that any departure from those interpretations and practices is required by a change in the law (whether legislative or non-legislative) made after that time. (3) The Chief Commissioner cannot make a reassessment of a tax liability more than 5 years after the initial assessment of the liability, unless— (a) the reassessment is to adjust tax to give effect to a decision on an objection or review as to an assessment, or (b) at the time the initial assessment or a reassessment was made, all the facts and circumstances affecting the liability under the relevant taxation law of the person in respect of whom the assessment or reassessment was made were not fully and truly disclosed to the Chief Commissioner and, as a result, the tax liability was assessed at a lower amount, or (c) the reassessment is authorised to be made more than 5 years after the initial assessment by another taxation law, or (d) the reassessment is made as a consequence of an application by a taxpayer, being an application made within 5 years after the initial assessment of the liability, and the reassessment reduces the tax liability. (4) The initial assessment of a tax liability remains the initial assessment of the liability for the purposes of this Act even if it is withdrawn under section 13. 10 Requirement for full and true disclosure of relevant facts and circumstances (1) A person who is liable to pay tax under a taxation law must, before or at the time an assessment of the tax liability is made, fully and truly disclose to the Chief Commissioner all the facts and circumstances affecting the tax liability under the relevant taxation law. Maximum penalty—250 penalty units. Note. An offence against subsection (1) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. (2) A defendant is not guilty of an offence under this section if the defendant proves that the defendant reasonably relied on some other person to ensure that the requirements of this section were satisfied. 11 Information on which assessment is made (1) The Chief Commissioner may make an assessment on the information that the Chief Commissioner has from any source at the time the assessment is made. (2) If the Chief Commissioner has insufficient information to make an exact assessment of a tax liability, the Chief Commissioner may make an assessment by way of estimate. 12 Compromise assessment (1) The Chief Commissioner may make an assessment in accordance with this section— (a) if it is difficult or impracticable for the Chief Commissioner to determine a person's tax liability under a taxation law without undue delay or expense because of the complexity or uncertainty of the case or for any other reason, or (b) for the purpose of settling a dispute between the Chief Commissioner and a person concerning the person's tax liability (whether or not a previous assessment has been made). (2) The Chief Commissioner may, with the agreement of the taxpayer, assess liability in an amount specified in, or determined in accordance with, the agreement. (3) Despite section 9, the Chief Commissioner cannot make a reassessment of a tax liability assessed in accordance with this section— (a) except with the agreement of the taxpayer, or (b) unless the assessment under this section was procured by fraud or there was a deliberate failure to disclose material information. (4) (Repealed) (5) This section does not limit the power of the Chief Commissioner to make an assessment by way of estimate under section 11. 13 Withdrawal of assessment The Chief Commissioner may withdraw an assessment (being an assessment for which a notice of assessment has been issued) at any time within 5 years after the date of issue of the notice, whether or not the amount of tax specified in the assessment has been paid. 14 Notice of assessment, reassessment or withdrawal of assessment (1) The Chief Commissioner may issue a notice of assessment (showing the amount of the assessment). (2) If the Chief Commissioner has not issued a notice of assessment of the tax liability of a taxpayer, the Chief Commissioner must issue the notice if a request to do so is made by the taxpayer within 5 years after the liability arose. (3) If the Chief Commissioner makes a reassessment, the Chief Commissioner must issue a notice of assessment (showing the amount of the reassessment). (4) If the Chief Commissioner withdraws an assessment, the Chief Commissioner must issue a notice of withdrawal of assessment. (5) The notice is to be in a form approved by the Chief Commissioner. 15 Inclusion of interest and penalty tax in notice of assessment A notice of assessment of a taxpayer's tax liability issued following a tax default by the taxpayer must specify any interest and penalty tax payable by the taxpayer under Part 5 or section 95 in respect of the default. 16 Validity of assessment The validity of an assessment is not affected because a provision of a taxation law has not been complied with. 16A Land tax assessments—special provisions The validity of a land tax assessment for a land tax year (within the meaning of the Land Tax Management Act 1956) is not affected by an objection or appeal under the Valuation of Land Act 1916 in relation to a land tax assessment for a subsequent land tax year, even if the objection or appeal results in a change to a land valuation on which the earlier land tax assessment was partly based. Note. Under the Land Tax Management Act 1956 land tax assessments are based on an average value of land, being an average of the land value of the land in respect of the most recent 3 land tax years. This section prevents an objection to a land tax assessment from affecting the validity of previous land tax assessments that were based on one or 2 of the same land values. 17 Acceptance of money or return not necessarily an assessment The acceptance of money by the Chief Commissioner paid in connection with the lodging of a return or other document, or the acceptance of a return or other document, is not, only because of the acceptance, an assessment. 17A Valuation of property (1) The Chief Commissioner may, for the purpose of making an assessment of the tax liability of a taxpayer— (a) require the taxpayer, by written notice, to provide evidence of the value of property that the Chief Commissioner considers appropriate, or (b) obtain a valuation of property from a person the Chief Commissioner is satisfied is suitably qualified to provide evidence of the value of property, or (c) rely on a valuation of property prepared for any purpose by a person the Chief Commissioner is satisfied is suitably qualified to provide evidence of the value of property. (2) The Chief Commissioner may recover from the taxpayer the cost of obtaining a valuation of property under subsection (1)(b) if— (a) the value of the property in the valuation obtained by the Chief Commissioner differs from the value of the property provided by the taxpayer by at least 10%, or (b) the taxpayer fails to comply with a written notice given to the taxpayer under subsection (1)(a) within 60 days after the notice is issued. Part 4 Refunds of tax 18 Entitlement to refund (1) If a taxpayer has paid a greater amount of tax in relation to a tax liability than the amount assessed for that liability, the Chief Commissioner must refund the difference to the taxpayer, subject to this Part. (2) For the avoidance of doubt, it is declared that an amount by which tax is overpaid is taken to be tax for the purposes of this Part. 19 Offset of refund against other liability (1) Instead of making a refund to a taxpayer, the Chief Commissioner may apply the amount that would otherwise be refunded to meet any of the following— (a) a tax debt or any other amount payable by the taxpayer under a taxation law, (b) a grant debt (within the meaning of the State Debt Recovery Act 2018) payable by the taxpayer, whether or not a debt recovery order has been made under that Act against the taxpayer for the debt, (c) a referable debt (within the meaning of the State Debt Recovery Act 2018) payable by the taxpayer, but only if a debt recovery order has been made against the taxpayer for the debt, (d) a fine, within the meaning of the Fines Act 1996, payable by the taxpayer. (2) A refund may be credited towards a taxpayer's future liability, but only with the taxpayer's consent. 20 Windfalls—refusal of refund The Chief Commissioner may refuse to make a refund to a taxpayer if— (a) the relevant taxation law provides for the passing on of the tax to another person, and (b) the tax sought to be refunded has been passed on to another person, and (c) the Chief Commissioner is not satisfied that appropriate arrangements have been made to pass the tax sought to be refunded on to that other person. Part 5 Interest and penalty tax Division 1 Interest 21 Interest in respect of tax defaults (1) If a tax default occurs, the taxpayer is liable to pay interest on the amount of tax unpaid calculated on a daily basis from the end of the last day for payment until the day it is paid at the interest rate from time to time applying under this Division. (2) Interest is payable under this section in respect of a tax default that consists of a failure to pay— (a) penalty tax under Division 2, or (b) a penalty imposed under section 106KA. (3) Interest is not payable in respect of a failure to pay interest under this division. 22 Interest rate (1) The interest rate is the sum of— (a) the market rate component, and (b) the premium component. (2) The market rate component is— (a) unless an order is in force under paragraph (b), the Bank Accepted Bill rate rounded to the second decimal place (rounding 0.005 upwards), or (b) the rate specified for the time being by order of the Minister published in the Gazette. (3) The premium component is 8% per annum. (4) In this section, the Bank Accepted Bill rate in respect of any day within a period specified in Column 1 of the Table to this subsection is the monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank for the month specified in Column 2 of that Table opposite that period. Table Column 1 Column 2 Period Monthly average yield 1 January to 31 March the preceding November 1 April to 30 June the preceding February 1 July to 30 September the preceding May 1 October to 31 December the preceding August (5) If the monthly average yield of 90-day Bank Accepted Bills for a particular month is not published by the Reserve Bank before the beginning of the relevant period, it is taken to be the same as the last monthly average yield of 90-day Bank Accepted Bills published by the Reserve Bank before that month. 23 Liability to payment of small amounts of interest There is no liability imposed by a taxation law to pay an amount of interest if the amount is less than $20. 24 Interest rate to prevail over interest otherwise payable on a judgment debt If judgment is given by or entered in a court for an amount of unpaid tax (or an amount that includes an amount of unpaid tax), the interest rate determined in accordance with this Division continues to apply, to the exclusion of any other interest rate, until the tax is paid. 25 Remission of interest (1) The Chief Commissioner may remit interest. (2) The Chief Commissioner may issue guidelines setting out how interest must be remitted under this division. (3) If guidelines are issued, interest must be remitted only in accordance with the guidelines. (4) The imposition or remission of penalty tax is not relevant to the imposition or remission of interest. Division 2 Penalty tax 26 Penalty tax in respect of certain tax defaults (1) If a tax default occurs, the taxpayer is liable to pay penalty tax in addition to the amount of tax unpaid. (2) Penalty tax imposed under this Division is in addition to interest. (3) Penalty tax is not payable in respect of a tax default that consists of a failure to pay— (a) interest under Division 1, or (b) penalty tax previously imposed under this division, or (c) a penalty imposed under section 106KA. 27 Amount of penalty tax (1) The amount of penalty payable for a tax default is, subject to this Division— (a) 25% of the amount of tax unpaid, or (b) if the taxpayer is a significant global entity within the meaning of the Income Tax Assessment Act 1997 of the Commonwealth—50% of the amount of tax unpaid. (2) The Chief Commissioner may increase the amount of penalty tax payable in respect of a tax default to 75% of the amount of tax unpaid if the Chief Commissioner is satisfied that the tax default was caused wholly or partly by the intentional disregard by the taxpayer (or a person acting on behalf of the taxpayer) of a taxation law. (3) The Chief Commissioner may determine that no penalty tax is payable in respect of a tax default if the Chief Commissioner is satisfied that— (a) the taxpayer (or a person acting on behalf of the taxpayer) took reasonable care to comply with the taxation law, or (b) the tax default occurred solely because of circumstances beyond the taxpayer's control (or if a person acted on behalf of the taxpayer, because of circumstances beyond either the person's or the taxpayer's control) but not amounting to financial incapacity. 28 Reduction in penalty tax for disclosure before investigation (1) The amount of penalty tax determined under section 27 is to be reduced by 80% if, before the Chief Commissioner informs the taxpayer that an investigation relating to the taxpayer is to be carried out, the taxpayer discloses to the Chief Commissioner, in writing, sufficient information to enable the nature and extent of the tax default to be determined. (2) This section does not apply in respect of information disclosed by a taxpayer if the taxpayer is registered under a taxation law and— (a) the tax default involved a failure to lodge a return as required under that taxation law, or (b) the tax default involved a failure to pay tax by the date required under that taxation law. 29 Reduction in penalty tax for disclosure during investigation (1) The amount of penalty tax determined under section 27 is to be reduced by 20% if, after the Chief Commissioner informs the taxpayer that an investigation relating to the taxpayer is to be carried out and before it is completed, the taxpayer discloses to the Chief Commissioner, in writing, sufficient information to enable the nature and extent of the tax default to be determined. (2) This section does not apply in respect of information disclosed by a taxpayer if the taxpayer is registered under a taxation law and— (a) the tax default involved a failure to lodge a return as required under that taxation law, or (b) the tax default involved a failure to pay tax by the date required under that taxation law. 30 Increase in penalty tax for concealment (1) The amount of penalty tax determined under section 27 is to be increased by 20% if, after the Chief Commissioner has informed the taxpayer that an investigation is to be carried out and before the investigation is completed, the taxpayer took steps to prevent or hinder the Chief Commissioner from becoming aware of the nature and extent of the tax default in whole or part. (2) For the purposes of this section, a taxpayer takes steps to prevent or hinder the Chief Commissioner if the taxpayer— (a) deliberately damages or destroys records required to be kept under the taxation law to which the investigation relates, or (b) refuses or fails (without reasonable excuse) to comply with a requirement made by the Chief Commissioner under Division 2 of Part 9 for the purposes of determining the taxpayer's tax liability, or (c) hinders or obstructs an authorised officer exercising functions under that Division for that purpose. Note. This Table contains a summary of the provisions of sections 27–30. Penalty category Prime rate Voluntary disclosure Concealment or hindrance in establishing underpayment % % Before investigation During investigation % % Failure to take reasonable care but no intentional disregard of the law 25 5 20 30 Failure to take reasonable care, but no intentional disregard of the law, by significant global entity 50 10 40 60 Intentional disregard of the law 75 15 60 90 31 Minimum amount of penalty tax Penalty tax is not to be imposed if the amount of the penalty tax is less than $20. 32 Time for payment of penalty tax Penalty tax must be paid by a taxpayer within the period specified for that purpose in a notice of assessment of the tax liability of the taxpayer, being a period of not less than 14 days. 33 Remission of penalty tax (1) The Chief Commissioner may, in such circumstances as the Chief Commissioner considers appropriate, remit penalty tax by any amount. (2) The imposition or remission of interest is not relevant to the imposition or remission of penalty tax. 33A Penalty tax relief (1) The Chief Commissioner may, in a way the Chief Commissioner thinks fit, publish guidelines on the circumstances in which, or the grounds on which, the Chief Commissioner may determine that no penalty tax is payable in relation to a tax default (penalty tax relief guidelines). (2) If the Chief Commissioner publishes penalty tax relief guidelines, the Chief Commissioner may determine that no penalty tax is payable in relation to a tax default after considering the guidelines. (3) This section does not affect section 27(3). Part 6 Returns Division 1 General 34 Form of returns A return is to be in a form approved by the Chief Commissioner. 35 Time of lodgment A return is taken to have been lodged by a person at the time the return is served on the Chief Commissioner. 36 Extending time or period for lodgment The Chief Commissioner may extend the time or period for lodgment of a return by a person. Division 2 Approval of special tax return arrangements 37 Approval of special tax return arrangements (1) Despite the provisions of another taxation law, the Chief Commissioner may, by written notice, give approval for a special arrangement for the lodging of returns and payment of tax under the taxation law to— (a) a specified taxpayer, or (b) a specified agent or other person on behalf of a specified taxpayer, a specified class of taxpayers or taxpayers for whom that agent or other person is authorised to act, or (c) any other specified person who is a party to a transaction or class of transactions in respect of which a liability for tax arises. (2) An approval, among other things— (a) may provide an exemption for the taxpayer or taxpayers from specified provisions of the taxation law to which it applies, and (b) may authorise the lodging of returns and payments of tax by electronic means. (3) An approval may be given on the initiative of the Chief Commissioner or on application. (4) The calculation of tax by a person other than the Chief Commissioner in accordance with a special arrangement approved under this section is not an assessment. (5) For the purposes of this Division, an arrangement approved under this section is a special arrangement and the person to whom the approval is given is an approval holder. (6) A special arrangement does not transfer a taxpayer's tax liability from a taxpayer to an approval holder. 38 Application for approval (1) An application for an approval under this Division must be made to the Chief Commissioner in a form approved by the Chief Commissioner. (2) The Chief Commissioner may grant or refuse an application for an approval under this Division. 39 Conditions of approval (1) An approval under this Division is subject to conditions specified by the Chief Commissioner in the notice of approval or by subsequent written notice. (2) The conditions of an approval may include— (a) conditions limiting the approval to tax liabilities of a specified class, and (b) conditions limiting the approval to transactions effected by instruments of a specified class, and (c) conditions requiring the lodging of returns at specified times and conditions as to the contents of the returns, and (d) conditions requiring payments of tax at specified times, and (e) conditions as to the means by which returns are to be lodged or payments of tax are to be made, and (f) if the approval provides an exemption from a requirement for the stamping of instruments, conditions as to the endorsement of the instruments, and (g) conditions requiring the keeping of specified records. 39A Registration of approval holders (1) The Chief Commissioner may, by written notice served on a person at the time of, or subsequent to, approving the person to pay tax or lodge returns under a special arrangement, register the person as a person who is approved to pay tax under the special arrangement. (2) The Chief Commissioner may, by order in writing served on the person at the time of, or subsequent to, registration, direct the person to pay tax in respect of any transaction or class of transactions that is the subject of a special arrangement in accordance with the special arrangement. (3) Tax that is the subject of such a direction must be paid in accordance with the special arrangement. (4) The Chief Commissioner may revoke the registration of a person under this section if the Chief Commissioner cancels an approval under this Division. 40 Variation and cancellation of approvals The Chief Commissioner may vary or cancel an approval under this Division by written notice served on the approval holder to whom the approval was given. 41 Contravention of approval (1) An approval holder must not fail to comply with the conditions of a special arrangement. Maximum penalty—250 penalty units. (2) A person does not commit an offence against subsection (1) for a failure to comply with the conditions of a special arrangement in relation to a particular tax liability if the provisions of the taxation law under which it is levied (disregarding the special arrangement) are complied with in relation to that tax liability. (3) Subsection (2) does not apply in relation to a tax liability for a transaction or class of transactions if the approval holder has been directed under section 39A to pay tax in respect of the transaction or class of transactions in accordance with the special arrangement. Note. An offence against subsection (1) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 42 Stamping of instruments (1) If— (a) an approval under this Division provides for an exemption from a requirement for the stamping of an instrument, and (b) the instrument is endorsed in accordance with the conditions of the approval, the instrument is taken to be duly stamped but without affecting liability for the payment of tax in relation to the instrument under the relevant taxation law. (2) A person who endorses an instrument otherwise than under and in accordance with an approval under this Division so as to suggest or imply that the instrument is properly so endorsed and as a result is taken to be duly stamped is guilty of an offence. Maximum penalty—100 penalty units. Note. An offence against subsection (2) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. (3) Despite subsection (1), the endorsing of an instrument as referred to in subsection (1) (b) is not evidence of an assessment of the duty payable under the Duties Act 1997 in respect of the instrument. Part 7 Collection of tax Division 1 General 43 Tax payable to the Chief Commissioner Tax that is payable is payable to the Chief Commissioner. 44 Unpaid tax is debt payable to Chief Commissioner (1) If the whole or part of tax payable by a taxpayer is not paid to the Chief Commissioner as required by a notice of assessment, the amount unpaid is a debt payable to the Chief Commissioner by the taxpayer. (2) A debt payable by a taxpayer to the Chief Commissioner under this Act is a tax debt under this Act. 45 Joint and several liability (1) If 2 or more persons are jointly and severally liable to pay an amount under a taxation law, the amount that is unpaid is a tax debt payable to the Chief Commissioner by each of them. (2) If under a taxation law two or more persons are jointly and severally liable to pay an amount of tax that is payable by any one of them, each person is also jointly and severally liable to pay any related charges, being— (a) any amount payable to the Chief Commissioner under a taxation law in relation to that amount, including any interest and penalty tax under Part 5, and (b) any costs and expenses incurred in relation to the recovery of that amount that the Chief Commissioner is entitled to recover from any such person. (2A) The Chief Commissioner may issue a notice of assessment of the liability of a person to pay any tax and related charges for which the person is jointly and severally liable with another person under a taxation law, even if a notice of assessment has already been issued to the other person. (3) A person who pays an amount of tax in accordance with the liability imposed by this section has such rights of contribution or indemnity from the other person or persons as are just. 46 Collection of tax from third parties (1) The Chief Commissioner may require any of the following persons instead of the taxpayer to pay tax that is payable but remains unpaid— (a) a person by whom any money is due or accruing or may become due to the taxpayer, (b) a person who holds or may subsequently hold money for or on account of the taxpayer, (c) a person who holds or may subsequently hold money on account of some other person for payment to the taxpayer, (d) a person having authority from some other person to pay money to the taxpayer. (2) The Chief Commissioner's requirement is to be made by notice in writing. (3) A copy of the notice must be served on the taxpayer. (4) The amount of money required to be paid to the Chief Commissioner is— (a) if the amount of the money so held or due or authorised to be paid does not exceed the amount payable by the taxpayer to the Chief Commissioner—all the money, or (b) if the amount of the money exceeds the amount so payable—sufficient money to pay the amount so payable. (5) The money must be paid to the Chief Commissioner on receipt of the notice, or when the money is held by the person and becomes due to the taxpayer, or after such period (if any) as may be specified by the Chief Commissioner, whichever is the later. (6) A person subject to a requirement of the Chief Commissioner under this section must comply with the requirement. Maximum penalty—100 penalty units. (7) A person who makes a payment in accordance with this section is taken to be acting under the authority of the taxpayer and of all other persons concerned and is indemnified by this section in respect of the payment. (8) If, after a person is given a notice under this section by the Chief Commissioner, the whole or a part of the amount is paid by another person, the Chief Commissioner must promptly notify the person to whom the notice is given of the payment and the notice is taken to be amended accordingly. (9) In this section, tax includes a judgment debt and costs in respect of such an amount. 47 Arrangements for payment of tax (1) The Chief Commissioner may extend the time for payment of tax by a taxpayer and may accept the payment of tax by instalments. (2) A decision of the Chief Commissioner under this section may be made subject to such conditions (for example, as to the payment of interest) as the Chief Commissioner may determine. (3) The Chief Commissioner may, in such circumstances as the Chief Commissioner considers appropriate, remit the payment of interest required to be paid by a condition imposed under subsection (2) by any amount. (4) This section ceases to apply if a debt recovery order under the State Debt Recovery Act 2018 is made against the taxpayer in respect of the amount payable. (5) Subsection (4) does not limit the functions of the Chief Commissioner under the State Debt Recovery Act 2018. Division 2 Recovery of tax from directors and former directors of corporations 47A Definitions In this Division— corporate tax liability means— (a) the amount of tax that a corporation has been assessed as being liable to pay, as set out in a notice of assessment issued to the corporation, and (b) any interest or penalty tax payable in respect of an amount referred to in paragraph (a). special arrangement for the payment of a corporate tax liability means an arrangement for the payment of tax made by the Chief Commissioner under section 47. 47B Liability of directors and former directors of corporation for failure to pay corporate tax liability (1) If a corporation fails to pay a corporate tax liability in accordance with a notice of assessment issued by the Chief Commissioner, the Chief Commissioner may serve a compliance notice on one or more of the following persons— (a) a person who is a director of the corporation, (b) a person who was a director of the corporation at the time the corporation first became liable to pay the tax, or any part of the tax, that is included in the corporate tax liability or at any time afterwards (referred to in this Division as a former director), subject to subsection (5). (2) A compliance notice is a notice that advises a director or former director of a corporation that he or she will be liable to pay a corporate tax liability of the corporation if the failure to pay the corporate tax liability is not rectified before the end of a period specified in the notice (the compliance period). (2A) The compliance period is to be a period of not less than 21 days from the date the notice is served on the director or former director. (3) For the purposes of this Division, a failure to pay a corporate tax liability is rectified if before the end of the compliance period— (a) the corporate tax liability is paid, or (b) the Chief Commissioner makes a special arrangement with the corporation for the payment of the corporate tax liability, or (c) the Hardship Review Board waives or defers payment of some or all of the corporate tax liability, or (d) an administrator of the corporation is appointed under Part 5.3A of the Corporations Act 2001 of the Commonwealth, or (e) the corporation begins to be wound up within the meaning of the Corporations Act 2001 of the Commonwealth. (4) If the failure to pay the corporate tax liability is not rectified before the end of the compliance period, the director or former director on whom the compliance notice was served is jointly and severally liable with the corporation to pay the corporate tax liability. (4A) The Chief Commissioner is to issue to the director or former director a notice of assessment of the tax liability of the director or former director under this Division. (5) A person does not cease to be liable to pay a corporate tax liability because the person ceases to be a director of the corporation, but a former director of a corporation is not liable for any tax for which the corporation first became liable after the director ceased to be a director of the corporation. 47C Failure to comply with special arrangements If— (a) a failure by a corporation to pay a corporate tax liability is rectified because of a special arrangement for the payment of the corporate tax liability, or because payment of part or all of the corporate tax liability is deferred by the Board of Review, and (b) the corporation fails to pay the corporate tax liability in accordance with the terms of the special arrangement or deferral, the Chief Commissioner may serve a further compliance notice on the director or former director in respect of the corporate tax liability, or so much of the corporate tax liability as remains unpaid, and this Division applies accordingly. 47D Right of indemnity and contribution If a director or former director of a corporation is liable to pay a corporate tax liability under this Division and an amount is paid by the director or former director in discharge of that liability, the director or former director is entitled— (a) to be indemnified for payment of that amount by the corporation, and (b) to recover a contribution from any other director or former director of the corporation who is liable to pay the corporate tax liability under this Division, as if the directors and former directors who are liable to pay the corporate tax liability had jointly guaranteed payment of the corporate tax liability. 47E Defences In proceedings for the recovery of a corporate tax liability from a director or former director of a corporation under this Division, it is a defence to the recovery of the corporate tax liability from the director or former director if the director or former director establishes that— (a) the director or former director took all reasonable steps that were possible in the circumstances to ensure that the corporation rectified the failure to pay the corporate tax liability before the end of the compliance period for the compliance notice served on the director or former director, or (b) the director or former director was unable, because of illness or for some other similar good reason, to take steps to ensure that the corporation rectified the failure to pay the corporate tax liability before the end of the compliance period for the compliance notice served on the director or former director. Part 8 Record keeping and general offences 48 Requirement to keep proper records (1) A person must keep, or cause to be kept, such records as are necessary to enable the person's tax liability under a taxation law to be properly assessed. Maximum penalty—250 penalty units. (2) This section does not affect a provision of any other taxation law concerning the keeping of records. Note. A person who is required by a taxation law to keep a record may include other information in the record for the person's own use. 49 Additional records (1) The Chief Commissioner may, by written notice given to a person who is required by a taxation law to keep a record or cause a record to be kept, require the person to keep, or cause to be kept, such additional records as are specified in the notice. (2) A person who fails to comply with such a notice is guilty of an offence. Maximum penalty—250 penalty units. Note. An offence against subsection (2) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 50 Inclusion of false or misleading information A person must not— (a) make a record required to be made by a taxation law that comprises or contains matter that the person knows is false or misleading in a material particular, or (b) include in a record required to be made or kept by a taxation law matter that the person knows is false or misleading in a material particular. Maximum penalty— (a) 500 penalty units for a first offence, or (b) 1,000 penalty units for a second or subsequent offence. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 51 Accessibility A person who is required by a taxation law to keep a record must keep the record so that it is able to be readily produced to the Chief Commissioner if the Chief Commissioner requires its production. Maximum penalty—250 penalty units. 52 Form of record—English language A person who is required by a taxation law to keep a record must keep the record in English or in a form that can be readily converted or translated into English. Maximum penalty—250 penalty units. 53 Period of retention (1) A person who is required by a taxation law to keep a record must retain the record for not less than 5 years after— (a) the date it was made or obtained, or (b) the date of completion of the transaction or act to which it relates, whichever is the later. Maximum penalty—250 penalty units. (2) A person may, with the written approval of the Chief Commissioner, destroy a record within the 5-year period unless another law requires the record to be retained for not less than 5 years. 54 Wilfully destroying records A person must not wilfully damage or destroy a record required to be kept by a taxation law. Maximum penalty—500 penalty units. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 55 Knowingly giving false or misleading information A person must not— (a) make a statement, orally or in writing, to a tax officer, or (b) give information, orally or in writing, to a tax officer, knowing that it is false or misleading in a material particular. Maximum penalty— (a) 500 penalty units for a first offence, or (b) 1,000 penalty units or 2 years imprisonment, or both, for a second or subsequent offence. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 56 Deliberately omitting information A person must not omit from a statement made to a tax officer any matter or thing without which the statement is, to the person's knowledge, false or misleading in a material particular. Maximum penalty— (a) 500 penalty units for a first offence, or (b) 1,000 penalty units or 2 years imprisonment, or both, for a second or subsequent offence. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 57 Failure to lodge documents A person must not fail or refuse to lodge a document, statement or return that is required to be lodged by a taxation law. Maximum penalty—250 penalty units. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 58 Falsifying or concealing identity A taxpayer who— (a) falsifies or conceals the identity, or the address or location of a place of residence or business, of the taxpayer or of another person, or (b) does, by act or omission, anything that facilitates the falsification or concealment of the identity, or the address or location of a place of residence or business, of the taxpayer or another person, is guilty of an offence. Maximum penalty—500 penalty units. Note. An offence against this section committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 58A Tax evasion A person must not, by a deliberate act or omission, evade or attempt to evade tax. Maximum penalty—500 penalty units or imprisonment for 2 years, or both. 59 General defence under Part 8 A person is not guilty of an offence against a requirement of this Part if the person proves that— (a) the person took reasonable care to comply with the requirement, or (b) the contravention of the requirement was caused solely because of circumstances beyond the person's control. Part 9 Tax officers, investigation, collection of information and secrecy provisions Division 1 Tax officers 60 The Chief Commissioner (1) There is to be a Chief Commissioner of State Revenue. (2) The person for the time being holding office or acting as Deputy Secretary, Revenue NSW in the department in which this Act is administered, is also to hold office as Chief Commissioner. 61 General administration of the taxation laws The Chief Commissioner has the general administration of this Act and the other taxation laws and may do all such things as are necessary or convenient to give effect to this Act and the other taxation laws. 61A Exceptions for general practitioners during relevant period (1) During the relevant period, the Chief Commissioner must not conduct an audit of— (a) a general practitioner's compliance with the Payroll Tax Act 2007, or (b) compliance with the Payroll Tax Act 2007 by an entity with whom a general practitioner has a practice arrangement, to the extent amounts paid or payable by the entity relate to the general practitioner. (2) Also, if a tax default by a general practitioner occurs before or during the relevant period— (a) in calculating, under Part 5, the interest payable by the general practitioner, no interest is payable in relation to a day that is within the relevant period, and (b) the general practitioner is not liable under Part 5 to pay— (i) for a tax default that occurs during the relevant period—penalty tax in relation to the tax default, or (ii) for a tax default that occurred before the relevant period—any penalty tax in relation to the tax default that was not paid before the relevant period. (3) Subsection (2) does not entitle a person to a refund of interest or penalty tax paid before the relevant period. (4) This section applies despite section 61 or another provision of a taxation law. (5) In this section— general practitioner means a medical practitioner who, under the Health Practitioner Regulation National Law, holds registration as a general practitioner. practice arrangement has the same meaning as in the Health Practitioner Regulation National Law (NSW). relevant period means the period— (a) starting at the beginning of 4 September 2023, and (b) ending at the beginning of 4 September 2024. 62 Legal proceedings in Chief Commissioner's name (1) Legal proceedings may be taken by or against the Chief Commissioner in the name "Chief Commissioner of State Revenue". (2) A person who takes legal proceedings in the name of the Chief Commissioner is taken to be authorised to take those proceedings, in the absence of evidence to the contrary. 63 Chief Commissioner may perform functions under Commonwealth Act The Chief Commissioner may exercise the functions of a State taxation officer under Part IIIA of the Commonwealth Taxation Administration Act 1953. 64 The Commissioner (1) There is to be a Commissioner of State Revenue. (2) The person for the time being holding office or acting as Executive Director, Technical and Advisory Services, Revenue NSW in the department in which this Act is administered, is also to hold office as Commissioner. (3) While there is no person holding office as Chief Commissioner, the Commissioner of State Revenue has the same functions as the Chief Commissioner under a taxation law. 65 Other staff Such other staff as may be necessary for the administration of the taxation laws may be employed under the Government Sector Employment Act 2013. 66 Use of consultants and contractors The Chief Commissioner may engage such consultants and contractors as may be necessary or convenient to exercise the Chief Commissioner's functions. 67 Delegation by Chief Commissioner The Chief Commissioner may delegate to any person any function of the Chief Commissioner under a taxation law or the Emergency Services Levy Insurance Monitor Act 2016, other than this power of delegation. 68 Authorised officers (1) The Chief Commissioner and the Commissioner are authorised officers for the purposes of the taxation laws. (2) The Chief Commissioner may appoint persons to be authorised officers for the purposes of the taxation laws. (3) A tax officer to whom the Chief Commissioner delegates functions under Division 2 is an authorised officer for the purposes of the taxation laws. 69 Identity cards for authorised officers An authorised officer must be issued with an identity card in a form approved by the Chief Commissioner— (a) containing the person's name and a photograph of the person, and (b) stating that the person is an authorised officer for the purposes of the taxation laws. 70 Personal liability A matter or thing done or omitted by the Chief Commissioner or a tax officer does not, if the matter or thing was done or omitted in good faith for the purpose of executing a taxation law, subject the Chief Commissioner or the tax officer so acting personally to any action, liability, claim or demand. Division 2 Investigation 71 Circumstances in which investigative powers may be exercised A function conferred under this Division may be exercised only for the purposes of a taxation law. Note. Section 80A provides that the powers may also be exercised for the purposes of a recognised revenue law in some circumstances. 72 Power to require information, instruments and records, and attendance (1) The Chief Commissioner may require a person, by written notice, to do any one or more of the following— (a) to provide to the Chief Commissioner (either orally or in writing) information that is described in the notice, (b) to attend and give evidence before the Chief Commissioner or an authorised officer, (c) to produce to the Chief Commissioner an instrument or record in the person's custody or control that is described in the notice. (2) The Chief Commissioner must, if the requirement is made of a person to determine that person's tax liability, indicate in the notice that the requirement is made for that purpose, but the Chief Commissioner is not otherwise required to identify a person in relation to whom any information, evidence, instrument or record is required under this section. (3) The Chief Commissioner may require information or evidence that is not given orally to be provided in the form of or verified by statutory declaration. (4) The Chief Commissioner may require evidence that is given orally to be given on oath or by affirmation and for that purpose the Chief Commissioner or an authorised officer may administer an oath or affirmation. (5) A person who is required to attend and give evidence orally is to be paid expenses in accordance with the scale of allowances to witnesses in force for the time being under the rules of the District Court. (6) Subsection (5) does not apply to a person, or a representative of a person, whose liability under a taxation law is being investigated by the Chief Commissioner. (7) The Chief Commissioner may make a recording, by such means as the Chief Commissioner determines, of the evidence given orally by a person. (8) The person to whom the notice is given must comply with the notice within such period as is specified in the notice or such extended period as the Chief Commissioner may allow. Maximum penalty (subsection (8)): 250 penalty units. Note. An offence against subsection (8) committed by a corporation is an executive liability offence attracting executive liability for a director or other person involved in the management of the corporation—see section 121. 73 Access to public records without fee The Chief Commissioner is entitled to inspect and take copies of any public record kept under an Act or law of this jurisdiction without payment of any fee that would be payable but for this section. 74 Use and inspection of documents and records provided to Chief Commissioner or authorised officer (1) This section applies to a document or record that is provided or produced to the Chief Commissioner or an authorised officer. (2) The Chief Commissioner or the authorised officer may take and retain possession of the document or record solely for the purpose of enabling the document or record to be inspected and for copies of, or extracts or notes from, the document or record to be made or taken by or on behalf of the Chief Commissioner or authorised officer. (3) However, if the record was provided or produced to the Chief Commissioner or an authorised officer on the premises where it is normally kept, the Chief Commissioner or authorised officer may remove it from those premises for the purposes referred to in subsection (2) only— (a) with the consent of the owner or occupier of the premises, or (b) if it is not practicable to inspect or copy or take extracts or notes from the record on the premises. (4) The Chief Commissioner or authorised officer may retain possession of the document or record— (a) except in the case of a document impounded under section 76 (1) (d), for a reasonable period, but not exceeding 28 days without the consent of the person entitled to it, or (b) in the case of a document impounded under section 76 (1) (d), until the tax payable in respect of the instrument has been paid. (5) The Chief Commissioner or the authorised officer must permit a person who would be entitled to inspect the document or record if it were not in the possession of the Chief Commissioner or authorised officer to inspect the document or record at any reasonable time. (6) Nothing in this section prejudices a lien a person has on the document or record. (7) Nothing in this section limits or affects section 76. 75 Power of entry on premises (1) The Chief Commissioner may enter and remain on premises if the Chief Commissioner has reason to believe or suspect that there are records at the premises that are relevant to the administration of a taxation law. (2) Entry may be made at any reasonable time. (3) The power of an authorised officer to enter premises may not be exercised unless the authorised officer has the written delegation issued