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 82KUE   NOMINATED BUSINESS PERCENTAGE TO BE REDUCED IF IT EXCEEDS BUSINESS PERCENTAGE ESTABLISHED DURING APPLICABLE LOG BOOK PERIOD OR IF IT IS UNREASONABLE  

82KUE(1)   [Application where percentage specified excessive]  

For the purposes of this Subdivision, where:

(a) a taxpayer, in the taxpayer's car records for a year of income, specifies, or purports to specify, a percentage (in this subsection called the excessive percentage ) of the kind mentioned in subparagraph 82KUB(c)(ii) or sub-subparagraph 82KUC(b)(i)(A) in respect of a car held by the taxpayer during a period (in this subsection called the holding period ) in the year of income; and

(b) the excessive percentage exceeds the percentage (in this subsection called the reduced percentage ) that is the lesser of the following percentages:

(i) the business percentage applicable to the car that was established during the applicable log book period referred to in subparagraph 82KUB(c)(ii) or sub-subparagraph 82KUC(b)(i)(A) , as the case may be;

(ii) the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period;

the following provisions have effect:

(c) the taxpayer shall be treated as if he or she had, in the car records, specified, in respect of the car, the reduced percentage instead of the excessive percentage;

(d) if the taxpayer, in the taxpayer's car records for a subsequent year of income, specifies, or purports to specify, in respect of the car, the excessive percentage in accordance with the condition set out in sub-subparagraph 82KUC(b)(i)(B) or subparagraph 82KUC(b)(ii) - the taxpayer shall be treated as if he or she had, in the car records for that subsequent year of income, specified, in respect of the car, the reduced percentage instead of the excessive percentage.

82KUE(2)   [Failure to specify nominated business percentage]  

For the purposes of this Subdivision, where:

(a) subparagraph 82KUC(b)(iii) applies in relation to a car held by a taxpayer during a period (in this subsection called the holding period ) in a year of income; and

(b) apart from this subsection, the taxpayer fails to specify, in the taxpayer's car records for the year of income, a percentage as the nominated business percentage applicable to the car in relation to the taxpayer for the holding period;

the taxpayer shall be treated as if he or she had, in the car records, specified, in respect of the car, as that nominated business percentage, the percentage that represents a reasonable estimate of the underlying business percentage applicable to the car in relation to the taxpayer for the holding period.