ATO Interpretative Decision
ATO ID 2002/536 (Withdrawn)
Income Tax
Luxury Car Tax and luxury cars that were manufactured in Australia more than 2 years before they are suppliedFOI status: may be released
-
The ATO view for this issue is covered in the Guide to luxury car tax (NAT 3394).This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
Status of this decision: Decision Withdrawn 4 November 2005
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 motor vehicle dealer, making a taxable supply of a luxury car under section 5-10 of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act), when it sells a luxury car that was manufactured in Australia more than 2 years before the current supply?
Decision
No, the entity is not making a taxable supply of a luxury car under section 5-10 of the LCT Act, when it sells a luxury car that was manufactured in Australia more than 2 years before the current supply.
Facts
The entity is a motor vehicle dealer. The entity is registered for goods and services tax (GST). The entity is selling a luxury car that was manufactured in Australia more than 2 years before the sale.
Reasons for Decision
Under paragraph 5-10(2)(b) of the LCT Act, an entity does not make a taxable supply of a luxury car if the luxury car is more than 2 years old.
Subsection 5-10(3) of the LCT Act explains when a car is considered to be 'more than 2 years old' at the time of a supply.
Under paragraph 5-10(3)(a) of the LCT Act, a car that has not been imported is considered to be more than 2 years old at the time of supply if the car was manufactured more than 2 years before the time of the supply. The time of manufacture is determined by reference to the built date plate that is affixed to the car when manufacture of the car is completed.
The entity is selling a luxury car that is not imported and that was manufactured in Australia more than 2 years prior to the present supply. Therefore, the car is considered to be more than 2 years old under paragraph 5-10(3)(a) of the LCT Act.
Accordingly, the entity is not making a taxable supply of a luxury car under section 5-10 of the LCT Act, when it sells a luxury car that was manufactured in Australia more than 2 years before the current supply.
Date of decision: 7 February 2002
Legislative References:
A New Tax System (Luxury Car Tax) Act 1999
section 5-10
paragraph 5-10(2)(b)
subsection 5-10(3)
paragraph 5-10(3)(a)
ATO ID 2002/537
Other References:
'Guide to Luxury Car Tax' - Nat 3394
Luxury Car Tax Fact Sheet - Nat 2963
Keywords
Goods and Services Tax Business Line
GST Streams
GST Luxury Car Tax Stream
Motor Vehicles
Luxury vehicles
ISSN: 1445-2782
| Date: | Version: | |
| 7 February 2002 | Original statement | |
| You are here → | 4 November 2005 | Archived |
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
