ATO Interpretative Decision
ATO ID 2003/733 (Withdrawn)
Excise
Entitlement to claim DAFGS grant for diesel fuel where it has already been claimed on the entity's behalf by another entityFOI status: may be released
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This ATO ID is withdrawn from the database because it contains a view in respect of the Diesel and Alternative Fuels Grants Scheme Act 1999 which was repealed with effect from 1 July 2003. Despite its withdrawal from the database, this ATO ID continues to be a precedential view in respect of claims made before 1 December 2003.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 23 April 2010
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the entity, a road transport operator, entitled to claim a grant under the Diesel and Alternative Fuels Grant Scheme Act 1999, (DAFGSA) for a diesel fuel application received prior to 1 October 2001 and used in the course of carrying on its road transport business and already claimed for on its behalf by another entity?
Decision
No. The entity, a road transport operator, is not entitled to claim a grant under the DAFGSA, for diesel fuel purchased and used in the course of carrying on its road transport business and already claimed on its behalf by another entity.
Facts
The entity entered into a contract to transport goods for another company.
The entity operated its own prime mover and trailers. The prime mover has a gross vehicle mass of 20 tonnes or more.
Under the terms of the contract, the other company purchased diesel fuel by entering into a bulk purchasing agreement with a supplier. The entity elected for the other company to supply diesel fuel to it and the other company charged the entity for this fuel. The fuel price charged by the other company to the entity was net of any grant payable under the Diesel and Alternative Fuels Grant Scheme (the scheme) on the diesel fuel claimed by the other company.
The entity agreed in writing that the other company would claim any DAFGS grant payable on the entity's behalf.
The other company proceeded to claim DAFGS grants on the entity's behalf.
Reasons for Decision
The written agreement between the entity and the other company authorised the other company to claim DAFGS grants on the entity's behalf. The entity thereby exercised its common law right to appoint an agent (the other company) to act on its behalf in relation to the claiming of DAFGS grants.
In fact, the entity's situation is similar to that described in section 15AA of the DAFGSA which provides an authority for third parties to make claims under section 15 of the DAFGSA. This legislative amendment was made to provide legislative confirmation of an entity's common law right to allow a third party to act on its behalf. The intent of section 15AA of the DAFGSA, which is to make the claiming process simpler, underlines the fact that only one entity can claim for the same parcel of fuel.
Furthermore, the second reading speech given by the Minister, the Honourable Joe Hockey MP, for the Diesel and Alternative Fuels Grant Scheme (Administration and Compliance) Bill 1999 states the aim of the Scheme is to substantially reduce the cost of major transport fuels and in turn reduce transport costs and consumer prices, especially in rural, regional and remote areas.
The entity has received the benefit of the grant through claims made by the other company on the entity's behalf. This benefit was received through reduced fuel costs as intended by the scheme. The agreement the entity entered into has been administered in the same manner as those entered into under section 15AA of the DAFGSA. The entity is therefore not entitled to make any further claims for the payment of a grant for the same diesel fuel.
Date of decision: 26 June 2003
Legislative References:
Diesel and Alternative Fuels Grant Scheme Act 1999
subsection 15(3)
subsection 15AA
Other References:
Diesel and Alternative Fuels Grant Scheme (Administration and Compliance) Bill 1999
Keywords
DAFGS claims
Diesel & alternative fuels grants scheme
Excise
Excise payments
ISSN: 1445-2782
| Date: | Version: | |
| 26 June 2003 | Original statement | |
| You are here → | 23 April 2010 | Archived |