Draft Taxation Determination

TD 93/D293

Income tax: will the Commissioner adjust the business use of a motor vehicle if certain business journeys recorded in a log book are found to be either false, private or have not significantly complied with the log book requirements of the substantiation legislation?

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FOI status:

draft only - for comment

Preamble

Draft Taxation Determinations (TDs) represent the preliminary, though considered, views of the ATO. Draft TDs may not be relied on; only final TDs are authoritative statements of the ATO.

1. Yes. If a log book entry:

-
records a journey as business but the journey is actually private;
-
is false or misleading; or
-
has not significantly complied with the requirements for a log book

by virtue of section 82KTE the Commissioner shall redetermine the business percentage, as if that entry had not been made.

Example:

A taxpayer's log book shows a business percentage of 90%. However, he has included home to work trips as business journeys and these are private travel. His business percentage without these trips is 78%. The Commissioner will redetermine the business percentage to be 78%.

Commissioner of Taxation
16 December 1993

References


BO UMG0074

ISSN: 1038-8982

Subject References:
car expense
substantiation
log books

Legislative References:
ITAA 82KTE
ITAA 82KUD

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