Taxation Determination

TD 94/16A1 - Addendum

Fringe benefits tax: where an employee is provided with a car by the employer and the car is kept in safe storage (e.g. in a commercial garage) while the employee is travelling, under what circumstances is that car taken to be available for private use under section 7 of the Fringe Benefits Tax Assessment Act 1986 ?

FOI status:

may be releasedFOI number: I 1217069

Addendum

This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Taxation Determination TD 94/16 to remove references to Miscellaneous Taxation Ruling MT 2021 which was withdrawn with effect from today.

TD 94/16 is amended as follows:

1. Paragraph 3

Omit the paragraph; substitute:


3. A prohibition against the private use of a car must be made in clear and unequivocal terms. A general instruction or understanding between an employer and employee would not be sufficient. Employees would need to be made aware that the prohibition is genuine and will be reinforced, for example with disciplinary measures if breached. Consistent enforcement is also required and may comprise of regular checks of odometer readings against business kilometres claimed to have been travelled by employees.

2. Related Rulings

Omit the references.

3. Subject Ref

Omit the references.

4. Legislative Ref

Insert 'TAA 1953'.

This Addendum applies on and from 16 March 2016.

Commissioner of Taxation
16 March 2016

© AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA

You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).

References

ATO references:
NO 1-7OZSMZJ

ISSN: 2205-6211