A New Tax System (Luxury Car Tax) Act 1999

Part 3 - Paying the luxury car tax  

Division 15 - Adjustments  

Subdivision 15-C - Bad debts adjustments  

15-40   Writing off bad debts  

(1)    
You have a decreasing luxury car tax adjustment if:

(a) you made a * taxable supply of a luxury car ; and

(b) the whole or part of the * consideration for the supply has not been received; and

(c) you write off as bad the whole or a part of the debt, or the whole or a part of the debt has been *overdue for 12 months or more.

(2)    
The decreasing luxury car tax adjustment is equal to:

(a) the amount of luxury car tax that was payable by you on the supply taking into account any previous *luxury car tax adjustments for the supply; minus

(b) the amount of luxury car tax (if any) that would be payable if the *price of the supply of the car (disregarding any previous *luxury car tax adjustments for the supply) was reduced by an amount equal to the sum of:

(i) the amount or amounts of the debt written off as bad; and

(ii) the amount of the debt that has been *overdue for 12 months or more (other than amounts already written off).

(3)    
You cannot have a * luxury car tax adjustment under this section if you * account on a cash basis .