Section 50B — State Sales Tax Enactment 1998

(a)

alter the incidence or postpone the due date of any State sales tax which is due and payable by or which would otherwise have been due and payable by any person;

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(b)

relieve any person from any liability which has arisen or which would otherwise have arisen to pay State sales tax or to furnish a return; or

(c)

reduce or avoid any liability imposed or which would otherwise have been imposed on any person in this Enactment, the Director may, without prejudice to such validity as it may have in any other respect or for any other purpose, disregard or vary the transaction and make such adjustments as he thinks fit to counteract any tax advantage obtained or obtainable by that person from or under that transaction.

(2)

Without prejudice to the generality of subsection (1), the Director may, for the purposes of this section, deem -

(a)

any person other than a taxable person who is a party to or has participated in any way in any transaction, to be a taxable person;

(b)

any sale of goods, whether or not taxable goods, that is affected by or is part of any transaction, made to or made by any taxable person or a person deemed to be a taxable person under paragraph (a), to be taxable goods;

(c)

any sale of taxable goods that, but for any transaction affected by this section, would have been within the taxable period when the sale was made, to take place in any taxable period;

(d)

any sale of taxable goods, that is affected by or is part of any transaction, to have been made, or consideration for the sale is to be given, at open market value.

(3)

In this section, “tax advantage” includes –

(a)

any avoidance or reduction in the liability of any person to pay State sales tax;

(b)

any increase in the entitlement of a person to a refund of State sales tax;

(c)

any reduction in the total consideration payable by any person in respect of any sale of taxable goods; or

(d)

any postponement of the time when State sales tax is due and payable.

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(4)

This section shall not apply to any arrangement carried out for bona fide commercial reasons and does not have as one of its main purposes the avoidance or reduction of State sales tax or the obtaining of any tax advantage.

Power to substitute price, disregard structure and impose surcharge.