FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART III - FRINGE BENEFITS  

Division 2 - Car fringe benefits  

Subdivision B - Taxable value of car fringe benefits  

SECTION 9   TAXABLE VALUE OF CAR FRINGE BENEFITS - STATUTORY FORMULA  

9(1)  


Subject to this Part, where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a particular car held by a particular person (in this section referred to as the provider ), the taxable value of that fringe benefit, or the aggregate of the taxable values of those fringe benefits, as the case may be, in relation to that year of tax, is the amount calculated in accordance with the formula:
formula and definitions

9(2)  
For the purposes of this section:


(a) the base value of the car is the sum of:


(i) where, at the earliest holding time, the car was owned by the provider or an associate of the provider, the amount calculated in accordance with the formula AB,
where:
  • A is the cost price of the car to the provider or associate, as the case may be; and
  • B is:

  • (A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time - 2/3 ; or

    (B) in any other case - 1; and

    (ii) in a case to which subparagraph (i) does not apply - the amount calculated in accordance with the formula AB,
    where:
  • A is the leased car value of the car at the earliest holding time; and
  • B is:

  • (A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time - 2/3 ; or

    (B) in any other case - 1; and

    (iii) the cost price of each non-business accessory that:

    (A) was fitted to the car after the earliest holding time and before the end of the year of tax; and

    (B) remained fitted to the car at a time during the year of tax when the car was held by the provider;


    (b) the earliest holding time, in relation to a car held by the provider at a particular time (in this paragraph referred to as the current time ), is the earliest time before the current time when the car was held by the provider or an associate of the provider; and


    (c) (Repealed by No 62 of 2011)


    (d) (Repealed by No 62 of 2011)


    (e) the amount of the recipient ' s payment is the sum of:


    (i) in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits - the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

    (ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and:

    (A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or

    (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;
    the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and

    (ii) in a case where:

    (A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and

    (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;
    the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and


    (f) the holding period is the period in the year of tax when the car was held by the provider.




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