Fuel tax: clients of LogbookMe Pty Ltd who use the reports generated by LogbookMe In-Car Logbook Solution for calculating the kilometres travelled in a vehicle as a record for fuel tax credit purposes
Please note that the PDF version is the authorised version of this ruling.
|LEGALLY BINDING SECTION:|
|What this Ruling is about|
|Date of effect|
|NOT LEGALLY BINDING SECTION:|
|Appendix 1: Explanation|
|Appendix 2: Detailed contents list|
This publication provides you with the following level of protection:
This publication (excluding appendixes) is a public ruling for the purposes of the Taxation Administration Act 1953.
A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes.
If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you.
What this Ruling is about
1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provisions identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates.
- Subdivision 41-B of the Fuel Tax Act 2006 (FTA)
- sections 41-20, 60-5 and 110-5 of the FTA
- subsections 41-5(1) and (2) of the FTA
- section 382-5 of Schedule 1 to the Taxation Administration Act 1953 (TAA), and
- subsections 382-5(1), 382-5(8) of Schedule 1 to the TAA.
All legislative references in this Ruling are to the FTA unless otherwise indicated.
Class of entities
3. The class of entities to which this Ruling applies are clients of LogbookMe Pty Ltd (LogbookMe) who are registered for goods and services tax and who use the LogbookMe In-Car Logbook Solution (LogbookMe In-Car Solution) for measuring the kilometres travelled and the location of the travel, in calculating the extent of their fuel tax credit entitlement.
6. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 10 to 28 of this Ruling.
- this Ruling has no binding effect on the Commissioner because the scheme entered into is not the scheme on which the Commissioner has ruled, and
- this Ruling may be withdrawn or modified.
Date of effect
8. This Ruling applies from 1 April 2014 to 30 June 2018. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10).
1. Class Ruling CR 2014/27 Fringe benefits tax: clients of LogbookMe Pty Ltd who use the LogbookMe In-Car Logbook solution for car logbook and odometer records.
2. Class Ruling CR 2015/2 Fringe benefits tax: clients of LogbookMe Pty Ltd who use the LogbookMe In-Car Logbook Solution to calculate the total number of car parking benefits.
- provided by the applicant in the application
- provided on the LogbookMe website
- subsequently requested from the applicant.
- Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation.
- non-integrated device installed in a light vehicle (referred to as an In-Car Device) that operates to capture information at specific times
- cloud-based remote data management platform (Platform) that securely receives, processes, reports and stores the location information, and
- web browser based secure portal (Portal) that allows the entity to review and generate reports.
12. The In-Car Device (ICD) is a global positioning system (GPS) device that monitors a vehicle's use including the position of the vehicle, the vehicle's travel (measured in kilometres) and the time and date of the start and cessation of the travel.
- vehicle category
- vehicle sub-category
- body type
- driver name
- vehicle registration.
14. The ICD contains a GPS module, movement sensors, solid state memory, mobile communication modules, sim card, battery and power socket. The ICD is powered through a USB cable that can be connected to the vehicle's 12 volt cigarette lighter attachment, in-built USB port or on-board diagnostics port.
16. The platform processes trip data recorded by the ICD and validates the classification of the location based on the segment of the travel being either within or outside of declared boundary locations. The boundary parameters are based on the manual assessment and are used to set the eligible / ineligible locations in the ICD based on geocodes (co-ordinates) for the eligible / ineligible locations. Classification will be based on segmented identification of the light vehicle route and whether it is within or outside of eligible / ineligible locations.
17. The location is recorded as eligible or ineligible based on the geocodes entered manually by the LogbookMe client, hence the system is customised for each client and this information dictates the parameters relevant for each client. The vehicle driver does not determine the declared boundary locations of each travel event.
18. The web portal utilises the sorted data in the platform and produces reports that show the number of kilometres travelled by each vehicle within the eligible and ineligible locations, and the period of the report.
Summary of process
19. Each time the ICD senses travel of the vehicle, the ICD automatically and continuously records the vehicle's current location using the GPS geocoding. The ICD records the current location, time and date and kilometres travelled within the eligible or ineligible locations as set by the geocodes.
22. The Platform receives all transmissions continuously while the ICD is operating and verifies data integrity and receipt. The Platform then processes the transmissions and generates a log for the vehicle in which the ICD is installed. As part of the processing the various transmissions are collated to create individual trips (Trip Log).
- reporting period
- vehicle identification
- kilometres travelled in eligible / ineligible locations
- total kilometres travelled.
- trip log with all travel
- date of travel
- start and end time of each travel event
- address at start and end of travel
- total kilometres travelled
- odometer readings at start and end of travel.
27. The LogbookMe report is used in conjunction with a dedicated vehicle fuel card for a given period to accurately allocate kilometres travelled to fuel usage between different activities for the purpose of determining the extent of use of taxable fuel for different purposes.
29. The LogbookMe In-Car Solution includes a device that may be used to determine the number of kilometres a light vehicle travels in specified locations. The locations are specified by geocodes input to a GPS of the ICD.
33. Provided the report is retained for 5 years, or in accordance within the specific requirements of section 382-5 of Schedule 1 of the TAA, it can be used for record keeping purposes to the extent of the kilometres travelled by the light vehicle for the purposes of calculating fuel tax credits.
Commissioner of Taxation
25 February 2015
Appendix 1 - Explanation
|This Appendix is provided as information to help you understand how the Commissioner's view has been reached. It does not form part of the binding public ruling.|
Is apportionment a requirement to work out the entitlement to a fuel tax credit?
34. Subsection 41-5(1) provides that an entity is entitled to a fuel tax credit for taxable fuel they acquire or manufacture in, or import into, Australia to the extent that they do so for use in carrying on their enterprise.
41-20 No fuel tax credit for fuel to be used in light vehicles on a public road
You are not entitled to a fuel tax credit for taxable fuel to the extent that you acquire, manufacture or import the fuel for use in a vehicle with a gross vehicle mass of 4.5 tonnes or less travelling on a public road.
38. Hence an entity that acquires taxable fuel for use in their enterprise in a vehicle with a gross vehicle mass of 4.5 tonnes or less (a light vehicle), is entitled to a fuel tax credit to the extent the fuel is used otherwise than in the vehicle travelling on a public road.
39. The use of the phrase 'to the extent' in section 41-5 and section 41-20 contemplates apportionment between fuel acquired for an eligible use and fuel acquired for an ineligible use. The implications of this phrase for the purposes on entitlement has been considered in paragraph 5 of FTD 2010/1 Fuel tax: is apportionment used when determining total fuel tax credits in calculating the net fuel amount under section 60-5 of the Fuel Tax Act 2006?
5. The use of the phrase 'to the extent that' in the FT Act contemplates apportionment in the case of:
- section 41-5 of the FT Act between a use that entitles you to a fuel tax credit and one that does not, and between uses that give rise to different rates of fuel tax credits, taking into account the operation of Division 41 of the FT Act...
41. To determine the extent of the fuel tax credit an entity that acquires taxable fuel, and uses the fuel in a light vehicle, will need to apportion the fuel between that used while travelling on a public road travel (ineligible use) and otherwise.
What are the principles for apportioning fuel used in a light vehicle?
33. It is not necessary for an apportionment method to track the intended use of every last drop of fuel. A method may be fair and reasonable without doing so provided that the application of the method reasonably reflects the extent to which taxable fuel is acquired for an eligible activity.
- undertake all the necessary apportionment as a single step process that encompasses working out the entitlement as well as the calculation of a fuel tax credit amount, or
- undertake apportionment as discrete steps, for example:
- apportionment takes place in working out entitlement to a fuel tax credit and then in calculating the fuel tax credit amount, or
- apportionment takes place in working out the amount of fuel used in particular equipment or particular auxiliary equipment of a vehicle travelling on a public road or in a group of equipment or group of auxiliary equipment and then apportioning the uses of fuel in relation to that equipment or group to calculate the fuel tax credit amount.
46. To apportion the taxable fuel an entity has acquired to the different activities for which the fuel was used, a measure can be used as part of an apportionment methodology. The Commissioner accepts that an entity can use any appropriate reliable measure as the basis for calculating the amount of taxable fuel that it acquires for use in an eligible activity.
- odometer readings of kilometres actually travelled
- route distances
- kilowatt hours of electricity generated
- hours of operation of vehicle or equipment, or
- average hourly fuel consumption of vehicle or equipment.
48. Although these are commonly used measures, because of the diverse range of eligible activities, this is not an exhaustive list and there may be other measures that are appropriate to an entity's circumstances.
Does the LogbookMe In-Car Solution provide a step in the apportionment of fuel such that it determines the kilometres travelled by a light vehicle and the location of the travel?
49. The platform processes trip data recorded by the ICD and validates the classification of the location based on the segment of the travel being either within or outside of declared boundary locations. The parameters for the boundary locations are based on the LogbookMe clients' manual assessment of the public and non-public road locations based on geocodes (co-ordinates) input to the ICD of the LogbookMe In-Car Solution.
51. Subject to the parameters set in the system the LogbookMe In-Car Solution can be used as a step in determining the kilometres travelled for which the taxable fuel used may be eligible for fuel tax credit purposes.
Does the report generated from the LogbookMe In-Car Solution satisfy a record for the purposes of subsection 382-5(8) of the Schedule 1 to the TAA?
53. Section 382-5(1) of Schedule 1 of the TAA provides that you must keep records that record and explain all transactions and other acts you engage in that are relevant to an entitlement to a fuel tax credit.
55. Subsection 382-5(8) of Schedule 1 to the TAA provides that the records must be in English, or easily translated into English, and enable an entitlement under an indirect tax law, that is, a fuel tax law to be ascertained.
56. The LogbookMe In-Car Solution includes a device (referred to as an ICD) that records kilometres travelled in a light vehicle and allows for recording time, date and classification of the kilometres travelled within and outside set parameters. The classification determines whether the travel was on public or non-public roads (referred to as eligible / ineligible locations).
57. The ICD automatically and continuously records the vehicle's current location using the GPS geocoding, time and kilometres travelled within the eligible or ineligible locations (which are set by the geocodes).
59. The platform receives all transmissions continuously as the ICD is operating and verifies data integrity and receipt. The Platform then processes the transmissions and generates a log of travel within the boundaries.
- the reporting period
- vehicle identification
- ineligible and eligible kilometres (based on the boundaries), and
- total kilometres travelled.
64. The report is in English and is a record that can be used in determining apportionment for fuel tax credit purposes. As such, it is a document that satisfies a record for the purposes of subsection 382-5(8) of Schedule 1 to the TAA.
Appendix 2 - Detailed contents list
|What this Ruling is about||1|
|Class of entities||3|
|Date of effect||8|
|In Car Device||12|
|Summary of process||19|
|Appendix 1 - Explanation||34|
|Is apportionment a requirement to work out the entitlement to a fuel tax credit?||34|
|What are the principles for apportioning fuel used in a light vehicle?||42|
|Does the LogbookMe In Car Solution provide a step in the apportionment of fuel such that it determines the kilometres travelled by a light vehicle and the location of the travel?||49|
|Does the report generated from the LogbookMe In Car Solution satisfy a record for the purposes of subsection 382 5(8) of the Schedule 1 to the TAA?||53|
|Appendix 2 - Detailed contents list||66|
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Not previously issued as a draft
Fuel tax credits
FTA 2006 41-5
FTA 2006 41-5(1)
FTA 2006 41-5(2)
FTA 2006 Subdiv 41-B
FTA 2006 41-20
FTA 2006 60-5
FTA 2006 110-5
TAA 1953 Sch 1 382-5
TAA 1953 Sch 1 382-5(1)
TAA 1953 Sch 1 382-5(8)