Ruling Compendium

FR 2009/1EC


  • Please note that the PDF version is the authorised version of this ruling.

The edited version of the Compendium of Comments is a Tax Office communication that is not intended to be relied upon as it provides no protection from primary tax, penalties, interest or sanctions for non-compliance with the law.
In accordance with PS LA 2008/3 it only affords level 3 protection.

A compendium of responses to the issues raised by external parties to FTR 2008/D1 Fuel tax: entitlement to a fuel tax credit under section 41-5 of the Fuel Tax Act 2006 in a vehicle or equipment hire arrangement

This compendium of comments has been edited to maintain the anonymity of entities that commented on the draft Ruling.

Summary of issues raised and responses

Issue No. Issue raised Tax Office Response/Action taken
1 Example 1

Taxpayers may not consider the example is practical. The number of litres involved is insignificant and therefore taxpayers may disregard the need to make adjustments - as trivial.

Example 4

There are arrangements where the principal engages the services of a contractor - the contractor uses their own equipment to fulfil their contractual obligations- and the contractor charges the principal for services provided at an hourly rate plus the cost of fuel used. It may be appropriate to incorporate an example dealing with this issue.

Example 5

There is no comment in relation to the amount of fuel left in the lawnmower.

This Ruling explains that an entity must meet the adjustment requirements set out in Division 44 of the Fuel Tax Act 2006 - the adjustment provisions apply regardless of the amount involved.

This arrangement is outside the scope of this Ruling but may be addressed separately by the Tax Office.

The example does not specifically address residual fuel. However, the Ruling explains what occurs in relation to residual fuel at paragraph 44 and those principles would apply in this case.


Relevant (draft) Ruling/Determination
FR 2009/1
FR 2008/D1