21.7 The otherwise deductible rule and jointly
provided fringe benefits
Where a fringe benefit (loan fringe benefit, expense payment
fringe benefit, property fringe benefit or residual fringe benefit)
is provided jointly to an employee and an associate in relation to
an income producing asset, the taxable value of the fringe benefit
can be reduced by the employee's share of any deductible amount. In
these cases, the amount ascertained as the reduction available
forms the 'unadjusted notional deduction', as described in
sections 8.8A of Loan and debt waiver fringe benefits, 9.4A of Expense payment fringe benefits, 17.5A of Property fringe benefits and 18.7A of Residual fringe benefits.
This rule also applies to car fringe benefits provided jointly
to an employee and an associate for income producing purposes.
A car which is owned jointly by an employee and
an associate (50% each) is applied by both persons to derive
assessable income. A valuation under this chapter is required
because of the extent of the documentation held. The deduction
otherwise available under this chapter will be reduced to the
employee's share of any deductible amount - that is, to 50% of the
'unadjusted notional deduction'.