25Security by deposit

25 Security by deposit

(1) Where an amount of sales tax is owing by a registered person and a deposit has been lodged for compliance by that person with the conditions of his certificate, the Commissioner may appropriate so much of the deposit as is sufficient to pay the amount of sales tax so owing.

(2) Where the right to appropriate a deposit arises under subregulation (1), the Commissioner may dispose of the deposit by auction, private sale or otherwise as he considers most favourable to the depositor and the net proceeds of the disposition shall, for the purposes of this regulation, be deemed to have been a deposit of cash and may be appropriated wholly or partly accordingly.

(3) Cash lodged as a deposit in respect of a security may be deposited in a Savings Bank in an account in the name of the Deputy Commissioner with whom the security was lodged.

(4) Where interest becomes due in respect of a deposit lodged in respect of a security, the Deputy Commissioner with whom the security was lodged may pay the interest to the person who lodged the deposit.

(6) A certificate under the hand of the Commissioner, a Second Commissioner or a Deputy Commissioner stating:

(a) that the whole or any portion of a deposit lodged in respect of a security was sold; and

(b) the amount of the net proceeds of the sale;

(7) Where:

(a) a person has lodged a deposit in respect of a security;

(b) the certificate in respect of which the security was given has been cancelled;

(c) the person is no longer required to be a registered person; and

(d) the person has met all existing and prospective liabilities for sales tax;

the Commissioner shall deliver or pay to the person or to the authorized agent or legal personal representative of the person, as the case requires:

(e) any part of the deposit that has not been disposed of pursuant to this regulation; and

(f) the balance of any cash held under the security after the deduction of any amounts authorised to be appropriated from the deposit.

(8) Where a party to a security, other than the registered person, makes a request in writing to the Commissioner to be discharged from his obligations under the security, the security shall terminate on the expiration of thirty days after the date of the receipt by the Commissioner of the request.

(9) The termination of a security does not relieve a party to the security from his obligations under the security in respect of a period prior to the date of the termination of the security.

Part V Sale value in certain cases

26 Certain goods made to order

Where: