FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 11 Calculation of depreciation and interest

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 11

  (1A)   For the purposes of this Subdivision, the amount of depreciation that is deemed to have been incurred by a person in respect of a car in respect of the period (in this subsection called the holding period ) during a year of tax while the car was held by the person is the amount calculated in accordance with the formula:

where:

"DEP" is the amount of depreciation that is deemed to have been incurred by the person in respect of the car in respect of the year of tax;

"DHP" is the number of days in the holding period during which the car was owned by the person; and

"DCO" is the number of days in the period in the year of tax during which the car was owned by the person.

  (1)   For the purposes of this Subdivision, the amount of depreciation that is deemed to have been incurred by a person in respect of a car in respect of a year of tax is the amount calculated in accordance with the formula:

where:

"A" is:

  (a)   where the car was owned by the person at the beginning of the year of tax--the depreciated value of the car at that time; or

  (b)   in any other case--the cost price of the car to the person;

"B" is the amount worked out for the person and the car using the formula in subsection   (1AA).

"C" is the number of days in the period in the year of tax during which the car was owned by the person; and

"D" is the number of days in the year of tax.

  (1AA)   The formula for working out the amount of B for the person and the car for subsection   (1) is:

    where:

"DV percentage" is the percentage applicable in using the diminishing value method (within the meaning of the Income Tax Assessment Act 1997 ) as at the start of the year of tax.

"effective life of the car" is the number of years in the period specified as the effective life of the car in a determination made by the Commissioner under section   40 - 100 of the Income Tax Assessment Act 1997 and in effect at the most recent time (before the end of the year of tax) the person became the owner of the car.

  (1B)   For the purposes of this Subdivision, the amount of interest that is deemed to have been incurred by a person in respect of a car in respect of the period (in this subsection called the holding period ) during a year of tax while the car was held by the person is the amount calculated in accordance with the formula:

where:

"INT" is the amount of interest that is deemed to have been incurred by the person in respect of the car in respect of the year of tax;

"DHP" is the number of days in the holding period during which the car was owned by the person; and

"DCO" is the number of days in the period in the year of tax during which the car was owned by the person.

  (2)   For the purposes of this Subdivision, the amount of interest that is deemed to have been incurred by a person in respect of a car in respect of a year of tax is the amount calculated in accordance with the formula:

where:

"A" is:

  (a)   where the car was owned by the person at the beginning of the year of tax--the depreciated value of the car at that time; or

  (b)   in any other case--the cost price of the car to the person;

"B" is the statutory interest rate in relation to the year of tax;

"C" is the number of days in the period in the year of tax during which the car was owned by the person; and

"D" is the number of days in the year of tax.