S 34 repealed by No 88 of 2013, s 3 and Sch 2 item 1, applicable in relation to the provision after 7.30 pm, by legal time in the Australian Capital Territory, on 8 May 2012 of: (a) transport in aircraft; and (b) incidental services on board aircraft. S 34 formerly read:
SECTION 34 REDUCTION OF TAXABLE VALUE
-
OTHERWISE DEDUCTIBLE
RULE
34(1)
[Expenditure incurred an allowable deduction]
Where:
(a)
the recipient of an airline transport fringe benefit in relation to an employer in relation to a year of tax is an employee of the employer;
(b)
if the recipient had, at the comparison time, incurred and paid unreimbursed expenditure (in this subsection called the
gross expenditure
), in respect of the provision of the recipients transport, equal to the amount that, but for this subsection and Division
14
and the recipients contribution, would be the taxable value of the airline transport fringe benefit in relation to the year of tax
-
a once-only deduction (in this subsection called the
gross deduction
) would, or would but for section
82A
of the
Income Tax Assessment Act 1936
, and Divisions
28
and
900
of the
Income Tax Assessment Act 1997
, have been allowable to the recipient under either of those Acts in respect of the gross expenditure;
(ba)
the amount (in this subsection called the
notional deduction
) calculated in accordance with the formula:
where:
GD
is the gross deduction; and
RD
is:
(i) if there is no recipients contribution in relation to the airline transport fringe benefit
-
nil; or
(ii) if there is a recipients contribution in relation to the airline transport fringe benefit equal to, or calculated by reference to, an amount of consideration paid by the recipient to the provider or to the employer in respect of the provision of the recipients transport
-
the amount (if any) that would, or that would but for section
82A
of the
Income Tax Assessment Act 1936
, and Divisions
28
and
900
of the
Income Tax Assessment Act 1997
, have been allowable as a once-only deduction to the recipient under either of those Acts in respect of that consideration if that consideration had been incurred and paid by the recipient at the comparison time;
exceeds nil;
(c)
except where the fringe benefit is:
(i)
an exclusive employee airline transport benefit; or
(ii)
an extended travel airline transport benefit;
the recipient gives to the employer, before the declaration date, a declaration, in a form approved by the Commissioner, in respect of the recipients transport; and
(d)
where the fringe benefit is an extended travel airline transport benefit
-
the recipient gives to the employer, before the declaration date, a travel diary in relation to the travel undertaken by the recipient in connection with the recipients transport;
the amount that, but for this subsection and Division
14
, would be the taxable value of that fringe benefit in relation to the year of tax shall be reduced by the notional deduction.
History
S 34(1) amended by
No 101 of 2006
, s 3 and Sch 2 items 85
-
86, by amending references to repealed inoperative provisions, effective 14 September 2006. For application and savings provisions see the
CCH Australian Income Tax Legislation archive
.
S 34(1) amended by No 39 of 1997, No 30 of 1995 and No 139 of 1987.
34(2)
[Income producing activity during travel not diarised]
For the purposes of the application of this section in relation to a fringe benefit, where the recipient:
(a)
while undertaking travel referred to in paragraph (1)(d), engages in an activity in the course of producing assessable income of the recipient; and
(b)
does not make, as mentioned in the definition of
travel diary
in subsection
136(1)
, an entry relating to the activity, being an entry of the kind referred to in that definition;
the activity shall be deemed not to have been engaged in by the recipient in the course of producing assessable income.
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