26Refunds and remission of tax

26 Refunds and remission of tax

(1) Subject to subsection (1A), where the Commissioner finds in any case that tax has been overpaid by a person, the Commissioner shall: (a) refund the amount of any tax overpaid; or (b) apply the amount of any tax overpaid against any liability of the person to the Commonwealth, being a liability arising under, or by virtue of, an Act of which the Commissioner has the general administration, and refund any part of the amount that is not so applied. (1A) Subsection (1) does not apply in relation to any tax paid by a person unless the Commissioner is satisfied that the tax has not been passed on by the person to another person, or, if passed on to another person, has been refunded to the other person. (2) Where a registered person has sold goods upon the sale value of which he has paid tax, and has subsequently written off as a bad debt the whole or any part of the amount for which the goods were sold, the Commissioner may: (a) on proof to his satisfaction that the whole amount is a bad debt—refund to the registered person the amount of tax paid on the sale value of the goods; (b) on proof to his satisfaction that a part of the amount is a bad debt—refund to the registered person so much of the tax as bears to the total amount of tax the same proportion as the amount so proved to be a bad debt bears to the total amount for which the goods were sold: Provided that if any amount in respect of which tax has been so refunded is at any time wholly or partly recovered by the taxpayer, he shall, within 21 days after the close of the month in which the amount is so recovered, repay to the Commissioner so much of the tax refunded as bears to the total amount of that tax the proportion which the amount so recovered bears to the amount in respect of which tax was so refunded. (3) Where the Commissioner is satisfied that: (a) tax has been paid in respect of the sale of goods to a registered person who was required to quote his certificate in respect of the purchase of those goods but who refused or failed to do so; (b) the tax has been wholly or partly included in the price for which that registered person purchased the goods; and (c) the tax has not been passed on by that registered person to some other person or, if passed on to some other person, has been refunded to that other person by the registered person; the Commissioner may, if so satisfied: (i) within a period of 3 years; or (ii) on consideration of a claim in writing lodged with the Commissioner, within a period of 3 years; from the date upon which the goods were so sold, pay to that registered person an amount equal to the tax so paid and included. (3A) Where the Commissioner is satisfied that: (a) goods have been sold to a registered person who, but for the operation of subsection 3(3), would have been taken to have quoted his certificate in respect of the purchase in accordance with subsection 12(1); and (b) by reason of the operation of subsection 3(3), the person was deemed not to have quoted his certificate in respect of the purchase; then: (c) if the Commissioner is satisfied that: (i) tax is payable in respect of the purchase but has not been paid; and (ii) the tax has not been wholly or partly included in the price for which the goods were purchased by the registered person or, if so included, has been refunded to the registered person; the Commissioner may remit the tax; (d) if the Commissioner is satisfied that tax has been paid in respect of the purchase and has not been wholly or partly included in the price for which the goods were purchased by the registered person—the Commissioner may pay to the person who paid the tax an amount equal to the tax so paid; or (e) if the Commissioner is satisfied that: (i) tax has been paid in respect of the purchase; (ii) the tax has been wholly or partly included in the price for which the goods were purchased by the registered person; and (iii) the tax has not been passed on by the registered person to some other person or, if passed on to some other person, has been refunded to that other person; the Commissioner may pay to the registered person an amount equal to the tax so paid and included. (4) Where goods are sold by any person to the Government of the Commonwealth or the Government of a State, and the Commissioner is satisfied: (a) that the goods are for the official use of a Government Department or of an authority specified in item 74 in the First Schedule to the Sales Tax (Exemptions and Classifications) Act 1935‑1973, and are not for re‑sale, and, in the case of goods sold to the Government of a State, an arrangement of the kind specified in that item has been made between the Governor‑General and the Governor of the State; (b) that tax has been paid or is payable under this Act in respect of some prior act, operation or transaction in relation to those goods, or goods used in, wrought into or attached to those goods; (c) that the amount of that tax has been paid or is payable by the person who so sold the goods, or has been wholly or partly included in the price for which that person purchased those goods, or the goods used in, wrought into or attached to those goods; and (d) that the amount of that tax has been excluded wholly or in part from the price for which the goods were sold by that person to the Government or Government Authority; the Commissioner may refund or pay to that person the amount which, in the opinion of the Commissioner, was so excluded. (5) Where the Commissioner is satisfied that goods, which have been manufactured by a baker or pastrycook, and to which the sale value prescribed by subsection 18(2) applies, have been donated to any public organization or committee established for the purpose of assisting unemployed persons in necessitous circumstances, or to any charitable institution, the taxpayer shall be entitled to a rebate of tax on the sale value of those goods. (6) Notwithstanding anything contained in this section, if any alteration is made in the rate of sales tax payable in respect of any goods, no refund, repayment or reduction shall, by reason of that alteration, be made of any amount paid or payable by any person as sales tax in respect of transactions acts or operations which took place before the date of assent to the law making the alteration. (7) In this section, unless the contrary intention appears, tax includes: (a) further tax; and (b) additional tax under section 29 or Part VIII.