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 82KZA   RETENTION, AND PRODUCTION, OF DOCUMENTS  

82KZA(1)   [Failure to retain for required period]  

Where a taxpayer fails to retain for the retention period in relation to an expense incurred by the taxpayer -

(aa) in the case of an expense that is in respect of fuel or oil and that was incurred in respect of a motor vehicle when owned or leased by the taxpayer:

(i) documentary evidence of the expense; or

(ii) odometer records maintained by or on behalf of the taxpayer for:

(A) if the taxpayer elects that subsection 82KW(2) apply in relation to the motor vehicle in relation to the year of income - the holding period within the meaning of that subsection; or

(B) in any other case - the holding period within the meaning of section 82KUA or the period referred to in subparagraph 82KZ(1)(c)(i) , as the case requires;

(a) in the case of any other expense - documentary evidence of the expense;

(b) in the case of a car expense - the car records, log book records and odometer records in relation to the expense; or

(c) in the case of a travel expense or of an eligible expense in relation to a travel allowance - the travel diary relating to the travel to which the expense relates,

a deduction is not allowable, and shall be deemed never to have been allowable, under this Act in respect of the expense.

82KZA(2)   [Notice re production of documentary evidence]  

The Commissioner may, by notice in writing served on a taxpayer, require the taxpayer to produce to the Commissioner, within a specified period of not less than 28 days, documentary evidence relating to expenses incurred by the taxpayer and, if the Commissioner does so, subsection (3) applies, in relation to the notice, in relation to each of those expenses.

82KZA(3)   [Non-compliance with notice to produce]  

Where -

(a) this subsection applies, in relation to a notice served on a taxpayer under subsection (2), in relation to an expense incurred by the taxpayer; and

(b) at the time when the notice is so served, the retention period in relation to the expense has not ended,

then, unless the taxpayer -

(ba) in the case of an expense that is in respect of fuel or oil and that was incurred in respect of a motor vehicle when owned or leased by the taxpayer - produces to the Commissioner, within the period specified in the notice or such longer period as the Commissioner allows:

(i) documentary evidence of the expense; or

(ii) odometer records maintained by or on behalf of the taxpayer for:

(A) if the taxpayer elects that subsection 82KW(2) apply in relation to the motor vehicle in relation to the year of income - the holding period within the meaning of that subsection; or

(B) in any other case - the holding period within the meaning of section 82KUA or the period referred to in subparagraph 82KZ(1)(c)(i) , as the case requires;

(c) in the case of any other expense - produces to the Commissioner, within the period specified in the notice or such longer period as the Commissioner allows, documentary evidence of the expense;

(d) in a case where the taxpayer produces to the Commissioner documentary evidence - includes in a schedule that is in the English language and in a form approved by the Commissioner and that is produced to the Commissioner within the period specified in the notice or such longer period as the Commissioner allows -

(i) a cross-reference to the documentary evidence of the expense; and

(ii) in relation to the cross-reference, a summary of the particulars set out in the documentary evidence together with, in a case where the expense was incurred in a foreign currency, particulars of the amount of the expense expressed in Australian currency;

(e) in the case of a car expense - produces to the Commissioner, within the period specified in the notice or such longer period as the Commissioner allows, the car records, log book records and odometer records in relation to the expense; and

(f) in the case of a travel expense or of an eligible expense in relation to a travel allowance - produces to the Commissioner, within the period specified in the notice or such longer period as the Commissioner allows, the travel diary relating to the travel to which the expense relates,

a deduction is not allowable, and shall be deemed never to have been allowable, under this Act in respect of the expense.

82KZA(4)   [Failure to comply not an offence]  

Notwithstanding section 8C of the Taxation Administration Act 1953 , a person is not guilty of an offence by reason only of failing to comply with a notice under subsection (2) of this section.

82KZA(5)   [Substitute document where original lost or destroyed]  

Where a document (in this subsection referred to as the original document ), being -

(aa) odometer records of the kind referred to in subparagraph (1)(aa)(ii) maintained by or on behalf of the taxpayer in respect of an expense incurred by the taxpayer;

(a) documentary evidence of an expense incurred by a taxpayer;

(b) one of the car records, log book records or odometer records in relation to a car expense incurred by a taxpayer; or

(c) a travel diary relating to travel to which relates an expense incurred by the taxpayer, being a travel expense or an eligible expense in relation to a travel allowance,

is lost or destroyed and the Commissioner is satisfied that -

(d) the taxpayer took all reasonable precautions to prevent loss or destruction of the original document;

(e) the original document was lost or destroyed because of circumstances beyond the control of the taxpayer; and

(f) the taxpayer has a document (in this subsection referred to as the substitute document ) that:

(i) is a copy of the original document; or

(ii) properly records all of the matters set out in the original document and was in existence when the original document was lost or destroyed,

the substitute document shall be deemed for the purposes of this Subdivision to be, and to have been at all times after the original document was lost or destroyed, the original document.

82KZA(6)   [No substitute document available]  

Where a document, being documentary evidence of an expense incurred by a taxpayer, is lost or destroyed and the Commissioner is satisfied that -

(a) the taxpayer took all reasonable precautions to prevent loss or destruction of the document;

(b) the document was lost or destroyed because of circumstances beyond the control of the taxpayer;

(c) subsection (5) does not apply in relation to the document; and

(d) either -

(i) the taxpayer has obtained a document (in this subsection referred to as a substitute document ) that would, if it were a receipt, invoice or similar document obtained by the taxpayer at the time when the first-mentioned document was obtained by the taxpayer, be documentary evidence of the expense; or

(ii) it is not reasonably practicable for the taxpayer to obtain a substitute document,

then -

(e) in a case where subparagraph (d)(i) of this subsection applies -

(i) paragraphs (1)(aa) and (a) and (3)(ba), (c) and (d) shall be deemed not to have applied, in relation to the expense, at any time after the first-mentioned document was lost or destroyed and before a substitute document was obtained by the taxpayer; and

(ii) as from the time when a substitute document was obtained by the taxpayer, the substitute document shall be deemed to be documentary evidence of the expense; or

(f) in any other case - paragraphs (1)(a) and (3)(c) and (d) do not apply in relation to the expense and shall be deemed not to have so applied at any time after the first-mentioned document was lost or destroyed.

82KZA(6A)   [Odometer records lost or destroyed]  

Where a document, being odometer records of the kind referred to in subparagraph (1)(aa)(ii) maintained by or on behalf of a taxpayer in respect of an expense incurred by the taxpayer in a year of income, is lost or destroyed and the Commissioner is satisfied that:

(a) the taxpayer took all reasonable precautions to prevent loss or destruction of the document;

(b) the document was lost or destroyed because of circumstances beyond the control of the taxpayer; and

(c) subsection (5) does not apply in relation to the document;

paragraphs (1)(aa) and (3)(ba) do not apply in relation to the expense and shall be deemed not to have applied at any time after the document was lost or destroyed.

82KZA(7)   [Car document or travel diary lost or destroyed]  

Where a document, being -

(a) one of the car records, log book records or odometer records in relation to a car expense incurred by a taxpayer; or

(b) a travel diary relating to travel to which relates an expense incurred by a taxpayer, being a travel expense or an eligible expense in relation to a travel allowance,

is lost or destroyed and the Commissioner is satisfied that -

(c) the taxpayer took all reasonable precautions to prevent loss or destruction of the document;

(d) the document was lost or destroyed because of circumstances beyond the control of the taxpayer; and

(e) subsection (5) does not apply in relation to the document,

then -

(f) in a case where paragraph (a) of this subsection applies - paragraphs (1)(b) and (3)(e); or

(g) in a case where paragraph (b) of this subsection applies - paragraphs (1)(c) and (3)(f),

do not apply, and shall be deemed not to have applied at any time after the document was lost or destroyed, in relation to the expense.

82KZA(7A)   [Car expense records for current income year]  

For the purposes of this section, log book records or odometer records shall be deemed to relate to a car expense incurred by a taxpayer in a year of income (in this subsection called the current year of income ) in relation to a car if, and only if:

(a) section 82KUB requires the records to be maintained by or on behalf of the taxpayer as a condition of a deduction being allowable to the taxpayer under this Act in respect of the expense; or

(b) both of the following conditions are satisfied:

(i) the current year of income is not a log book year of income of the taxpayer in relation to the car;

(ii) section 82KUB required the records to be maintained by or on behalf of the taxpayer as a condition of a deduction being allowable to the taxpayer under this Act in respect of a car expense incurred by the taxpayer in relation to the car in the year of income that was the last log book year of income of the taxpayer in relation to the car before the current year of income.

82KZA(7B)   [Records year of income relating to current income year]  

For the purposes of this section, car records of a taxpayer for a year of income (in this subsection called the records year of income ) in relation to a car shall be taken to relate to a car expense incurred by the taxpayer in a year of income (in this subsection called the current year of income ) in relation to the car if, and only if:

(a) the records year of income is the same as the current year of income; or

(b) both of the following conditions are satisfied:

(i) the current year of income is not a log book year of income of the taxpayer in relation to the car;

(ii) the records year of income is:

(A) the last log book year of income of the taxpayer in relation to the car before the current year of income; or

(B) a year of income later than that last log book year of income and earlier than the current year of income.

82KZA(8)   [Limitations]  

This section has effect subject to this Subdivision.