| Disclaimer This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law. You cannot rely on this record in your tax affairs. It is not binding and provides you with no protection (including from any underpaid tax, penalty or interest). In addition, this record is not an authority for the purposes of establishing a reasonably arguable position for you to apply to your own circumstances. For more information on the status of edited versions of private advice and reasons we publish them, see PS LA 2008/4. |
Edited version of your written advice
Authorisation Number: 1012829072873
Date of advice: 29 June 2015
Ruling
Subject: LCT and importation of a luxury vehicle
Question
Is the car not subject to the luxury car tax if is not registered for road use?
Answer
Whether or not the car is not registered for road use it is still subject to the luxury car tax.
Relevant facts and circumstances
You have decided not to register the car for road use.
Relevant legislative provisions
A New Tax System (Luxury Car Tax) Act 1999 - sections 7-5 & 7-10.
Reasons for decision
It was formerly decided that the importation of the car was a taxable importation for the purposes of the A New Tax System (Luxury Car Tax) Act 1999 (LCT Act) and therefore subject to luxury car tax.
You have informed us that as you have now decided not to register the car for road use and therefore the car is no longer subject to luxury car tax.
In the ruling issued on a specific date in 20XX it is stated that under section 7-5 of the LCT Act, luxury car tax is payable on all taxable importations of luxury cars and that under subsection 7-10(1) of the LCT Act you make a taxable importation of a luxury car if the luxury car is imported; and you enter the car for home consumption.
Further, the following has been reproduced from our previous decision:
The term 'road vehicle' refers to the class of vehicle, not to the actual use to which a particular vehicle may be put. It is a road vehicle if it is in a class of vehicle that is designed for use on public roads and it would be a road vehicle even though it may never be used or registered for use onpublic roads.
We are of the view that the car is a road vehicle. Moreover, whether the car is registered or not for road use does not change the class of vehicle to which it belongs. Further, as the importation of the car is considered to be a taxable importation under section 7-10 of the LCT Act it is subject to the luxury car tax.