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 82KUC  

82KUC   DEDUCTIONS NOT ALLOWABLE FOR CAR EXPENSES INCURRED IN A NON-LOG BOOK YEAR OF INCOME UNLESS LOG BOOK RECORDS KEPT IN PREVIOUS LOG BOOK YEAR OF INCOME ETC.  
Subject to this Subdivision, where a 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 not a log book year of income of the taxpayer in relation to the 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 car unless:

(a) odometer records are maintained by or on behalf of the taxpayer in relation to the car for the holding period; and

(b) the taxpayer, in the taxpayer's car records for the current year of income, specifies whichever of the following percentages is applicable:

(i) if paragraph 82KUB(b) applied in relation to the car in relation to the taxpayer in relation to the year of income that was the last log book year of income of the taxpayer in relation to the car:

(A) if the current year of income is the year of income next following that last log book year of income - a percentage as the nominated business percentage applicable to the 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 for that last log book year of income; or

(B) in any other case - the percentage that was the nominated business percentage applicable to the car in relation to the taxpayer for the period that was the holding period in the year of income next following that last log book year of income and specified in the taxpayer's car records for that next following year of income;

(ii) if subparagraph (i) does not apply - the percentage that was:

(A) the nominated business percentage applicable to the car in relation to the taxpayer for the period that was the holding period in the year of income that was the last log book year of income of the taxpayer in relation to the car; and

(B) specified in the taxpayer's car records for that last log book year of income; or

(iii) if the percentage referred to in sub-subparagraph (i)(B) or subparagraph (ii) would, apart from this subparagraph, be applicable but the taxpayer is of the opinion that the percentage calculated in accordance with the formula:

N   −   U

where:

N is the percentage referred to in sub-subparagraph (i)(B) or subparagraph (ii), as the case may be; and

U is 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;

is a percentage that:

(A) if the car is a low business kilometre car of the taxpayer in relation to the year of income - exceeds nil; or

(B) in any other case - exceeds 10%;

a percentage as the nominated business percentage applicable to the car in relation to the taxpayer for the holding period.