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 82KV   CAR EXPENSES - EXEMPTIONS FROM LOG BOOK METHOD SUBSTANTIATION  

82KV(1)    

82KV(2)    

82KV(3)   [Exceptions]  

Sections 82KUA , 82KUB , 82KUC and 82KUD do not apply in relation to a car expense that relates to a car and is incurred by a taxpayer during a year of income if -

(a) the taxpayer -

(i) uses the car at any time during the year of income; and

(ii) does not use the car at any time during the year of income otherwise than in an exempt manner;

(aa) both of the following conditions are satisfied:

(i) at all times during the year of income when the car was held by the taxpayer, the car was unregistered;

(ii) during the period in the year of income when the car was held by the taxpayer, the car was exclusively or principally used in the course of producing assessable income of the taxpayer;

(b) the car is included at any time during the year of income in the trading stock of a business of selling cars that is carried on by the taxpayer and the taxpayer does not use the car at any time during the year of income; or

(c) the expense is incurred in connection with repairs to, or other work on, the car done in the course of a business of doing repairs to, or other work on, cars that is carried on by the taxpayer.

82KV(4)   [Use in exempt manner]  

For the purposes of subsection (3), where -

(a) a car is -

(i) a taxi, panel van or utility truck; or

(ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and

(b) a taxpayer uses the car -

(i) in any case - in the course of producing assessable income of the taxpayer;

(ii) in a case where the taxpayer drives the car in the course of using the car as mentioned in subparagraph (i) - for the purpose of travelling between a place where the car is so used and the place of residence of the taxpayer;

(iii) in a case where a person other than the taxpayer drives the car in the course of use of the car as mentioned in subparagraph (i) - by providing the car to the person for the purpose of travelling between a place where the car is used as mentioned in subparagraph (i) and the place of residence of the person; or

(iv) in any case - for the purpose of travel that is incidental to use of the car as mentioned in subparagraph (i),

the taxpayer shall be taken to use the car in an exempt manner.

82KV(5)   [Other exempt use]  

For the purposes of subsection (3), where a taxpayer -

(a) uses, in the course of a business of selling cars that is carried on by the taxpayer, a car that is included in the trading stock of the business;

(b) uses a car by letting it on lease or hire in the course of a business of letting cars on lease or hire that is carried on by the taxpayer; or

(c) being an employer, uses the car by providing it for the exclusive use of a person who is, or of persons each of whom is, an employee of the taxpayer or a relative of such an employee, in circumstances where the person, or any of the persons, is entitled to use the car for private purposes,

the taxpayer shall be taken to use the car in an exempt manner.

82KV(6)   [Registered car]  

For the purposes of this section, a car shall be taken to be registered in a particular place if it may be driven on a public road in that place without contravening the law in force in that place.