11Certificates of exemption from tax

11 Certificates of exemption from tax

(1) Where an account holder in respect of an account kept in Australia applies to the Commissioner in accordance with this section for the issue of a certificate of exemption in relation to the account: (a) if the Commissioner is satisfied that all debits made, or to be made, to the account are, or are likely to be, either excluded debits or exempt debits—he shall issue a certificate of exemption in relation to the account; or (b) if the Commissioner is not so satisfied—he shall refuse the application and shall cause notice in writing of his decision in relation to the application to be served, by post or otherwise, on the person who made the application. (2) A certificate of exemption comes into force on a day specified in the certificate as the day of commencement of the certificate (which may be a day before the day on which the certificate is issued) and remains in force until the expiration of the day specified in the certificate as the day of expiry of the certificate or, if no day is specified as the day of expiry of the certificate, until the certificate ceases to be in force by virtue of subsection (5). (3) Where the Commissioner: (a) is notified by the account holder, or either or any of the account holders, of an exempt account that an eligible debit has been, or is to be, made to the account; or (b) becomes satisfied that an eligible debit has been, or is to be, made to an exempt account; he may, in his discretion, by writing signed by him, revoke the certificate. (4) Subject to subsection (4A), where: (a) an eligible debit has been made to an exempt account; or (b) the account holder or one or more of the account holders, as the case requires, of an exempt account expects or expect that an eligible debit will be made to the exempt account within the ensuing period of 30 days; the account holder or each of the account holders, as the case requires, of the exempt account, shall, within 7 days, notify the Commissioner in writing accordingly. (4A) Where: (a) there are 2 or more account holders of an exempt account; and (b) one of those account holders notifies the Commissioner in accordance with subsection (4) of an eligible debit to, or expected to be made to, the exempt account; the other account holder or account holders, as the case requires, shall not be required to notify the Commissioner under that subsection of the eligible debit. (5) Where the Commissioner has revoked a certificate of exemption in relation to an account, he shall serve, by post or otherwise, notice of that revocation: (a) on the account holder or, if there are 2 or more account holders, on each of them; and (b) on the financial institution with which the account is kept; and, notwithstanding that any day of expiry shown on the certificate has not occurred, the certificate ceases to be in force in relation to the account when the notice is served on the financial institution. (6) An application made for the issue of a certificate of exemption shall be in writing and the person making the application shall furnish such information as the Commissioner requires in connection with his consideration of that application.