New South Wales Consolidated Acts

DUTIES ACT 1997 - SECT 259D

259D Liability of insured person for wrongly claiming exemption

(1) An insurer who is liable to pay the duty under this Chapter on a contract of insurance with the insurer may require a person who wrongly claims a small business exemption in respect of the contract of insurance to pay the insurer an amount equal to the duty, together with any interest or penalty tax payable.

(2) The requirement is duly made if it is contained in a written request that is given to the person and that specifies the amount of duty.

(3) If the amount is not paid, the insurer may recover it as a debt.

(4) A person wrongly claims a small business exemption if the person provides the insurer with a small business declaration in respect of the contract of insurance and the person is not a small business at the time the insurance is effected or renewed.

(5) It does not matter whether or not the declaration was made dishonestly.

(6) In this section--

"small business declaration" has the same meaning as it has in section 259C.