INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART III - LIABILITY TO TAXATION  

Division 3 - Deductions  

Subdivision F - Substantiation of certain expenses of years of income up to and including 1993-94  

SECTION 82KUB  

82KUB   DEDUCTIONS NOT ALLOWABLE FOR CAR EXPENSES INCURRED IN A LOG BOOK YEAR OF INCOME UNLESS LOG BOOK RECORDS AND ODOMETER RECORDS ETC. ARE MAINTAINED  
Subject to this Subdivision, where a car (in this section called the deductible car ) is held by a taxpayer during a period (in this section called the holding period ) in a year of income (in this section called the current year of income ) that is a log book year of income of the taxpayer in relation to the deductible car, a deduction is not allowable under this Act in respect of a car expense incurred by the taxpayer in the current year of income in relation to the deductible car unless:

(a) if any of the following subparagraphs applies:

(i) the taxpayer commenced to hold the deductible car during the last 12 weeks of the current year of income;

(ii) all of the following sub-subparagraphs apply:

(A) on the last day (in this subparagraph called the last holding day ) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held no other cars that were long-term log book cars;

(B) there was an earlier day in the current year of income when the taxpayer held both the deductible car (or its predecessor) and one or more other cars that were long-term log book cars;

(C) the period in the current year of income, being the period that ended on the last holding day and that consisted of a number of consecutive days, where, on each of those days, the taxpayer held the deductible car (or its predecessor) and no other car that was a long-term log book car, is less than 12 weeks;

(D) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the maintenance of log book records or odometer records, or of log book records and odometer records, would not be required as a condition of a deduction being allowable under this Act in respect of a car expense incurred in relation to the deductible car, or in relation to the deductible car and one or more other log book cars;

(iii) all of the following sub-subparagraphs apply:

(A) on the last day (in this subparagraph called the last holding day ) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held one or more other cars that were long-term log book cars;

(B) there was an earlier day in the current year of income when the taxpayer held one or more long-term log book cars that did not wholly consist of the deductible car (or its predecessor) and that other car (or its predecessor) or those other cars (or their predecessors), as the case may be;

(C) the period in the current year of income, being the period that ended on the last holding day and that consists of a number of consecutive days where, on each of those days, the taxpayer held the deductible car (or its predecessor) and that other car (or its predecessor) or those other cars (or their predecessors), as the case may be, is less than 12 weeks;

(D) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the maintenance of log book records or odometer records, or of log book records and odometer records, would not be required as a condition of a deduction being allowable under this Act in respect of a car expense incurred in relation to the deductible car, or in relation to the deductible car and one or more other log book cars;

(iv) the Commissioner is satisfied, having regard to the taxpayer's circumstances, that it would be unreasonable to expect log books and odometer records in relation to the deductible car to have been maintained by or on behalf of the taxpayer for an applicable log book period in relation to the deductible car;

the taxpayer, in the taxpayer's car records for the current year of income, specifies a percentage as the nominated business percentage applicable to the deductible car in relation to the taxpayer for the holding period;

(b) if paragraph (a) does not apply, either of the following subparagraphs applies:

(i) all of the following sub-subparagraphs apply:

(A) on the last day (in this subparagraph called the last holding day ) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held no other cars that were long-term log book cars;

(B) there was an earlier day in the current year of income when the taxpayer held both the deductible car (or its predecessor) and one or more other cars that were long-term log book cars;

(C) the period in the current year of income, being the period that ended on the last holding day and that consisted of a number of consecutive days, where, on each of those days, the taxpayer held the deductible car (or its predecessor) and no other car that was a long-term log book car, is not less than 12 weeks;

(D) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the taxpayer could, in the taxpayer's car records for a subsequent year of income, specify a percentage as the nominated business percentage applicable to the deductible car or specify percentages as the nominated business percentages respectively applicable to the deductible car and one or more other log book cars, without being limited to the business percentage established during the applicable log book period for the current year of income;

(ii) all of the following sub-subparagraphs apply:

(A) on the last day (in this subparagraph called the last holding day ) in the current year of income when the taxpayer held the deductible car (otherwise than pending its replacement, for use in the course of producing assessable income of the taxpayer, by another log book car), the taxpayer held one or more other cars that were long-term log book cars;

(B) there was an earlier day in the current year of income when the taxpayer held one or more long-term log book cars that did not wholly consist of the deductible car (or its predecessor) and that other car (or its predecessor) or those other cars (or their predecessors), as the case may be;

(C) the period in the current year of income, being the period that ended on the last holding day and that consists of a number of consecutive days where, on each of those days, the taxpayer held the deductible car (or its predecessor) and that other car (or their predecessors) or those other cars (or their predecessors), as the case may be, is not less than 12 weeks;

(D) it would be concluded that the taxpayer did not commence, or cease, to hold any car for the sole or dominant purpose of ensuring that the taxpayer could, in the taxpayer's car records for a subsequent year of income, specify a percentage as the nominated business percentage applicable to the deductible car or specify percentages as the nominated business percentages respectively applicable to the deductible car and one or more other log book cars, without being limited to the business percentage established during the applicable log book period for the current year of income;

both of the following conditions are satisfied:

(iii) log book records and odometer records are maintained by or on behalf of the taxpayer for the applicable log book period in relation to the deductible car;

(iv) the taxpayer, in the taxpayer's car records for the current year of income, specifies a percentage as the nominated business percentage applicable to the deductible car in relation to the taxpayer for the holding period; or

(c) in any other case - both of the following conditions are satisfied:

(i) log book records and odometer records are maintained by or on behalf of the taxpayer for the applicable log book period in relation to the deductible car; and

(ii) the taxpayer, in the taxpayer's car records for the current year of income, specifies a percentage as the nominated business percentage applicable to the deductible car in relation to the taxpayer for the holding period, not being a percentage that exceeds the business percentage established during the applicable log book period.