Commonwealth: Fringe Benefits Tax Assessment Act 1986 (Cth)

Fringe Benefits Tax Assessment Act 1986 No. 39, 1986 Compilation No. 95 Compilation date: 15 February 2025 Includes amendments: Act No. 8, 2025 This compilation is in 2 volumes Volume 1: sections 1–78A Volume 2: sections 90–167 Schedule Endnotes Each volume has its own contents About this compilation This compilation This is a compilation of the Fringe Benefits Tax Assessment Act 1986 that shows the text of the law as amended and in force on 15 February 2025 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents Part I—Preliminary 1 Short title 2 Commencement 2A Application of the Criminal Code 2B Application Part II—Administration 3 General administration of Act 4 Annual report Part IIA—Core provisions Division 1—Working out an employer's fringe benefits taxable amount 5A Simplified outline of this Division 5B Working out an employer's fringe benefits taxable amount Division 2—Working out an employer's aggregate fringe benefits amount 5C Aggregate fringe benefits amount Division 3—Employee's individual fringe benefits amount 5D Simplified outline 5E Employee's individual fringe benefits amount 5F Working out the employee's share Part III—Fringe benefits Division 1—Preliminary 6 Part not to limit generality of benefit Division 2—Car fringe benefits Subdivision A—Car benefits 7 Car benefits 8 Exempt car benefits 8A Exempt car benefits: cars that are zero or low emissions vehicles Subdivision B—Taxable value of car fringe benefits 9 Taxable value of car fringe benefits—statutory formula 10 Taxable value of car fringe benefits—cost basis 10A No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained 10B No reduction of operating cost in a non‑log book year of tax unless log book records and odometer records are maintained in log book year of tax 11 Calculation of depreciation and interest 12 Depreciated value 13 Expenditure to be increased in certain circumstances Division 3—Debt waiver fringe benefits Subdivision A—Debt waiver benefits 14 Debt waiver benefits Subdivision B—Taxable value of debt waiver fringe benefits 15 Taxable value of debt waiver fringe benefits Division 4—Loan fringe benefits Subdivision A—Loan benefits 16 Loan benefits 17 Exempt loan benefits Subdivision B—Taxable value of loan fringe benefits 18 Taxable value of loan fringe benefits 19 Reduction of taxable value—otherwise deductible rule Division 5—Expense payment fringe benefits Subdivision A—Expense payment benefits 20 Expense payment benefits 20A Exemption—no‑private‑use declaration 21 Exempt accommodation expense payment benefits 22 Exempt car expense payment benefits Subdivision B—Taxable value of expense payment fringe benefits 22A Taxable value of in‑house expense payment fringe benefits 23 Taxable value of external expense payment fringe benefits 24 Reduction of taxable value—otherwise deductible rule Division 6—Housing fringe benefits Subdivision A—Housing benefits 25 Housing benefits Subdivision B—Taxable value of housing fringe benefits 26 Taxable value of non‑remote housing fringe benefits 27 Determination of market value of housing right 28 Indexation factor for valuation purposes—non‑remote housing Division 7—Living‑away‑from‑home allowance fringe benefits Subdivision A—Living‑away‑from‑home allowance benefits 30 Living‑away‑from‑home allowance benefits Subdivision B—Taxable value of living‑away‑from‑home allowance fringe benefits 31 Taxable value—employee maintains a home in Australia 31A Taxable value—fly‑in fly‑out and drive‑in drive‑out employees 31B Taxable value—any other case Subdivision C—Related provisions 31C Maintaining a home in Australia 31D First 12 months employee is required to live away from home 31E Fly‑in fly‑out and drive‑in drive‑out requirements 31F Declarations 31G Substantiating related expenses 31H Exempt food component Division 9—Board fringe benefits Subdivision A—Board benefits 35 Board benefits Subdivision B—Taxable value of board fringe benefits 36 Taxable value of board fringe benefits 37 Reduction of taxable value—otherwise deductible rule Division 9A—Meal entertainment Subdivision A—Meal entertainment 37A Key principle 37AA Division only applies if election made 37AB Employee contributions to be excluded 37AC Meal entertainment benefits 37AD Meaning of provision of meal entertainment 37AE Fringe benefits only arise if employer is provider 37AF No other fringe benefits arise if election made 37AG Some benefits still arise Subdivision B—50/50 split method of valuing meal entertainment 37B Key principle 37BA Taxable value using 50/50 split method Subdivision C—12 week register method 37C Key principle 37CA Election by employer 37CB Taxable value using 12 week register method 37CC Choosing the 12 week period for a register 37CD FBT years for which register is valid 37CE Matters to be included in register 37CF False or misleading entries invalidate register Division 10—Tax‑exempt body entertainment fringe benefits Subdivision A—Tax‑exempt body entertainment benefits 38 Tax‑exempt body entertainment benefits Subdivision B—Taxable value of tax‑exempt body entertainment fringe benefits 39 Taxable value of tax‑exempt body entertainment fringe benefits Division 10A—Car parking fringe benefits Subdivision A—Car parking benefits 39A Car parking benefits 39AA Anti‑avoidance—fee on first business day not representative 39AB When fees are not representative 39B When commercial parking stations are located within a 1 km radius of business premises or associated premises Subdivision B—Taxable value of car parking fringe benefits 39C Taxable value of car parking fringe benefits—commercial parking station method 39D Taxable value of car parking fringe benefits—market value basis 39DA Taxable value of car parking fringe benefits—average cost method 39E Fees charged by commercial parking stations for all‑day parking Subdivision C—Statutory formula method—spaces 39F The key principle 39FA Spaces method of calculating total taxable value of car parking fringe benefits 39FB Number of spaces exceeds number of employees 39FC Meaning of daily rate amount 39FD Meaning of availability period 39FE Meaning of relevant recipients contribution Subdivision D—12 week record keeping method 39G The key principle 39GA Employer may elect to use 12 week record keeping method 39GB Value of fringe benefits for year 39GC Meaning of total value of car parking benefits (register) 39GD Meaning of car parking availability period 39GE Choosing the 12 week period for a register 39GF FBT years for which register is valid 39GG Matters to be included in register 39GH Fraudulent entries invalidate register Division 11—Property fringe benefits Subdivision A—Property benefits 40 Property benefits 41 Exempt property benefits Subdivision B—Taxable value of property fringe benefits 42 Taxable value of in‑house property fringe benefits 43 Taxable value of external property fringe benefits 44 Reduction of taxable value—otherwise deductible rule Division 12—Residual fringe benefits Subdivision A—Residual benefits 45 Residual benefits 46 Year of tax in which residual benefits taxed 47 Exempt residual benefits 47A Exemption—no‑private‑use declaration Subdivision B—Taxable value of residual fringe benefits 48 Taxable value of in‑house non‑period residual fringe benefits 49 Taxable value of in‑house period residual fringe benefits 50 Taxable value of external non‑period residual fringe benefits 51 Taxable value of external period residual fringe benefits 52 Reduction of taxable value—otherwise deductible rule Division 13—Miscellaneous exempt benefits 53 Motor vehicle fringe benefit fuel etc. to be exempt in certain cases 54 Provision of food or drink to be exempt benefit in certain cases 55 Benefits provided by certain international organisations to be exempt 56 Preservation of diplomatic and consular immunities 57 Exempt benefits—employees of religious institutions 57A Exempt benefits—public benevolent institutions, health promotion charities, some hospitals and public ambulance services 58 Exempt benefits—live‑in residential care workers 58A Exempt benefits—employment interviews and selection tests 58AA Exempt benefits—engagement of relocation consultant 58B Exempt benefits—removals and storage of household effects as a result of relocation 58C Exempt benefits—sale or acquisition of dwelling as a result of relocation 58D Exempt benefits—connection or re‑connection of certain utilities as a result of relocation 58E Exempt benefits—leasing of household goods while living away from home 58F Exempt benefits—relocation transport 58G Exempt benefits—motor vehicle parking 58GA Exempt benefits—small business car parking 58H Exempt benefits—newspapers and periodicals used for business purposes 58J Exempt benefits—compensable work‑related trauma 58K Exempt benefits—in‑house health care facilities 58L Exempt benefits—certain travel to obtain medical treatment 58LA Exempt benefits—compassionate travel 58M Exempt benefits—work‑related medical examinations, work‑related medical screening, work‑related preventative health care, work‑related counselling, migrant language training 58N Exempt benefits—emergency assistance 58P Exempt benefits—minor benefits 58PA Exempt benefits—worker entitlement contributions 58PB Meaning of approved worker entitlement funds 58Q Exempt benefits—long service awards 58R Exempt benefits—safety awards 58S Exempt benefits—trainees engaged under Australian Traineeship System 58T Exempt benefits—live‑in domestic workers employed by religious institutions or by religious practitioners 58U Exempt benefits—live‑in help for elderly and disadvantaged persons 58V Exempt benefits—food and drink for non‑live‑in domestic employees 58W Exempt benefits—deposits under the Small Superannuation Accounts Act 1995 58X Exempt benefits—provision of certain work related items 58Y Exempt benefits—membership fees and subscriptions 58Z Exempt benefits—taxi travel 58ZB Exempt benefits—approved student exchange programs 58ZC Exempt benefits—remote area housing benefits 58ZD Exempt benefits—meals on working days 58ZE Exempt benefits—provision of certain education or training Division 14—Reduction of taxable value of miscellaneous fringe benefits 59 Reduction of taxable value—remote area residential fuel 60 Reduction of taxable value—remote area housing 60AA Guideline price for repurchase of remote area residential property 60A Reduction of taxable value—remote area holiday transport fringe benefits subject to ceiling 61 Reduction of taxable value—remote area holiday transport fringe benefits not subject to ceiling 61A Reduction of taxable value—overseas employment holiday transport 61B Reduction of taxable value of certain expense payment fringe benefits in respect of relocation transport 61C Reduction of taxable value—temporary accommodation relating to relocation 61D Reduction of taxable value of temporary accommodation meal fringe benefits 61E Reduction of taxable value of certain expense payment fringe benefits in respect of employment interviews or selection tests 61F Reduction of taxable value of certain expense payment fringe benefits associated with work‑related medical examinations, work‑related medical screenings, work‑related preventative health care, work‑related counselling or migrant language training 61G Reduction of taxable value of fringe benefits if certain deductions relating to payments to associates are not allowed 62 Reduction of aggregate taxable value of in‑house fringe benefits 63 Reduction of taxable value of living‑away‑from‑home food fringe benefits 63A Reduction of taxable value in respect of entertainment component of certain fringe benefits 65A Reduction of taxable value—education of children of overseas employees Division 14A—Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes 65CA Amortisation of taxable value of fringe benefits relating to remote area home ownership schemes 65CB Amendment of assessments Division 14B—Reducible fringe benefits relating to remote area home repurchase schemes 65CC Reducible fringe benefits relating to remote area home repurchase schemes Division 15—Car substantiation rules for otherwise deductible provisions 65D Car substantiation rules 65E No compliance with substantiation rules in log book year of tax unless log book records and odometer records are maintained 65F No compliance with substantiation rules in non‑log book year of tax unless log book records kept in previous log book year of tax Part IIIA—Rebates of tax 65J Rebate for certain not‑for‑profit employers etc. Part IV—Liability to tax 66 Liability to pay tax 67 Arrangements to avoid or reduce fringe benefits tax Part V—Returns and assessments Division 1—Returns 68 Annual returns 69 Further returns 70 Keeping records of indirect tax transactions 70D Tax agent to give taxpayer copy of notice of assessment Division 2—Assessments 72 First return deemed to be an assessment 73 Default assessments 74 Amendment of assessments 75 Refund of amounts overpaid 76 Amended assessment to be an assessment 77 Notice of assessment 78 Validity of assessment 78A Objections An Act relating to the assessment and collection of the tax imposed by the Fringe Benefits Tax Act 1986, and for related purposes Part I—Preliminary 1 Short title This Act may be cited as the Fringe Benefits Tax Assessment Act 1986. 2 Commencement This Act shall come into operation on the day on which it receives the Royal Assent. 2A Application of the Criminal Code Chapter 2 of the Criminal Code applies to all offences against this Act. Note: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility. 2B Application (1) This Act extends to every external Territory referred to in the definition of Australia. (2) Except so far as the contrary intention appears, this Act extends to acts, omissions, matters and things outside Australia, whether or not in a foreign country. (3) Except where otherwise expressly provided, this Act extends to matters and things whether occurring before or after the commencement of this Act. (4) This Act binds the Crown in each of its capacities. Part II—Administration 3 General administration of Act The Commissioner has the general administration of this Act. Note: An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953. 4 Annual report (1) The Commissioner shall, as soon as practicable after 30 June in each year, prepare and furnish to the Minister a report on the working of this Act, including any breaches or evasions of this Act of which the Commissioner has notice. (2) The Minister shall cause a copy of a report furnished under subsection (1) to be laid before each House of the Parliament within 15 sitting days of that House after the day on which the Minister receives the report. (3) For the purposes of section 34C of the Acts Interpretation Act 1901, a report that is required by subsection (1) to be furnished as soon as practicable after 30 June in a year shall be taken to be a periodic report relating to the working of this Act during the year ending on that 30 June. Part IIA—Core provisions Division 1—Working out an employer's fringe benefits taxable amount 5A Simplified outline of this Division The following is a simplified outline of this Division: This Division explains how to work out an employer's fringe benefits taxable amount for a year of tax. This is the amount on which the employer must pay fringe benefits tax (see section 66). 5B Working out an employer's fringe benefits taxable amount Year of tax 2000‑2001 and later years (1A) Subject to subsection (1D), an employer's fringe benefits taxable amount for the year of tax beginning on 1 April 2000 or a later year of tax is the sum of the subsection (1B) amount and the subsection (1C) amount. Note: Other provisions affect the fringe benefits taxable amount. For example, see section 124 (about assessments). Subsection (1B) amount (1B) The subsection (1B) amount is the amount worked out using the formula: Subsection (1C) amount (1C) The subsection (1C) amount is the amount worked out using the formula: Increase in fringe benefits taxable amount for year of tax 2000‑2001 and later years (1D) If any benefits provided in respect of the employment of an employee of an employer are exempt benefits under section 57A, the employer's fringe benefits taxable amount for the year of tax beginning on 1 April 2000 or a later year of tax as worked out under subsection (1A) is increased by the employer's aggregate non‑exempt amount for the year of tax concerned. How to work out aggregate non‑exempt amount (1E) An employer's aggregate non‑exempt amount for the year of tax is worked out as follows. Method statement Step 1. For each employee, add: (a) the individual grossed‑up type 1 non‑exempt amount (see subsection (1F)) in relation to the employer for the year of tax; and (b) the individual grossed‑up type 2 non‑exempt amount (see subsection (1G)) in relation to the employer for the year of tax. The result is the individual grossed‑up non‑exempt amount for the employee. Step 2. If: (b) the employer is a government body and the duties of the employment of one or more employees are as described in paragraph 57A(2)(b) (which is about duties of employment being exclusively performed in or in connection with certain hospitals); or (c) the employer is a public hospital; or (ca) the employer provides public ambulance services or services that support those services and the employee is predominantly involved in connection with the provision of those services; or (d) the employer is a hospital described in subsection 57A(4) (which is about hospitals carried on by certain societies and associations that are exempt from income tax); subtract $17,000 from the individual grossed‑up non‑exempt amount for each employee of the employer referred to in paragraph (c), (ca) or (d), or each employee referred to in paragraph (b), for the year of tax. However, if the individual grossed‑up non‑exempt amount for such an employee is equal to or less than $17,000, the amount calculated under this step for the employee is nil. Step 3. If step 2 does not apply in respect of one or more employees of the employer, reduce the individual grossed‑up non‑exempt amount for each such employee by $30,000, but not below nil. Step 4. If the amount calculated under step 2 or 3 in respect of an employee is positive, reduce that amount (but not below nil) by the lesser of: (a) $5,000; and (b) so much of the employee's individual grossed‑up non‑exempt amount as relates to benefits covered by subsection (1M) (about salary packaged meal entertainment and entertainment facility leasing benefits). Step 5. Add together the amounts calculated under step 4 in relation to the employees of the employer. The total amount is the employer's aggregate non‑exempt amount for the year of tax. Individual grossed‑up type 1 non‑exempt amount (1F) For the purposes of step 1 in the method statement in subsection (1E), the individual grossed‑up type 1 non‑exempt amount of an employee in relation to the employer for the year of tax is: Individual grossed‑up type 2 non‑exempt amount (1G) For the purposes of step 1 in the method statement in subsection (1E), the individual grossed‑up type 2 non‑exempt amount of an employee in relation to the employer for the year of tax is: Working out the type 1 individual base non‑exempt amount (1H) An employee's type 1 individual base non‑exempt amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 3 of the method statement in subsection (1K) and step 3 of the method statement in subsection (1L). Working out the type 2 individual base non‑exempt amount (1J) An employee's type 2 individual base non‑exempt amount in relation to the employer for the year of tax is worked out by adding the amounts worked out under step 4 of the method statement in subsection (1K) and step 4 of the method statement in subsection (1L). Working out the subsection (1K) amounts (1K) An employee's subsection (1K) amounts for the year of tax are worked out as follows. Method statement Step 1. Work out under subsection 135Q(3) for each of the employer's employees the amount that would be the employee's individual fringe benefit amount for the year of tax in respect of the employee's employment by the employer if subsection 135Q(1) were amended: (a) by omitting "or 58"; and (b) by omitting "one of those sections" from paragraph (b) and "those sections" from paragraph (c) and substituting in each case "that section". Step 2. Identify the benefits taken into account in step 1 that are GST‑creditable benefits (see section 149A). Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1K) amount for the individual. Step 4. The remainder of the amount is the step 4 of subsection (1K) amount for the individual. Working out the subsection (1L) amounts (1L) An employee's subsection (1L) amounts for the year of tax are worked out as follows. Method statement Step 1. Work out for each employee his or her share (if any) of the amounts that, if section 57A did not apply, would be the taxable values of the excluded fringe benefits for the year of tax in respect of the employee's employment by the employer if those benefits were not excluded fringe benefits, but disregarding benefits: (a) that constitute the provision of meal entertainment as defined in section 37AD (whether or not the employer made an election under section 37AA); or (b) that are car parking fringe benefits; or (c) whose taxable values are wholly or partly attributable to entertainment facility leasing expenses. Step 2. Identify the benefits taken into account in step 1 that are GST‑creditable benefits (see section 149A). Step 3. So much of the amount worked out under step 1 that relates to the benefits identified under step 2 is the step 3 of subsection (1L) amount for the individual. Step 4. The remainder of the amount is the step 4 of subsection (1L) amount for the individual. Salary packaged meal entertainment and entertainment facility leasing benefits (1M) This subsection covers a benefit that is provided under a salary packaging arrangement if: (a) the benefit is constituted by the provision of meal entertainment (as defined in section 37AD, whether or not the employer has elected that Division 9A of Part III apply to the employer); or (b) the benefit is wholly or partly attributable to entertainment facility leasing expenses. Using aggregate fringe benefits amount for most recent base year (2) This section is subject to section 135G. Note: Section 135G allows the fringe benefits taxable amount to be worked out using the employer's aggregate fringe benefits amount from an earlier year of tax in special cases. Definitions (3) In this section: FBT rate means the rate of fringe benefits tax for the year of tax. GST rate means the rate of goods and services tax payable under the A New Tax System (Goods and Services Tax) Act 1999 for the year of tax. type 1 aggregate fringe benefits amount means the employer's type 1 aggregate fringe benefits amount for the year of tax worked out under subsection 5C(3). type 2 aggregate fringe benefits amount means the employer's type 2 aggregate fringe benefits amount for the year of tax worked out under subsection 5C(4). Division 2—Working out an employer's aggregate fringe benefits amount 5C Aggregate fringe benefits amount (1) Work out an employer's aggregate fringe benefits amount for a year of tax earlier than the year of tax beginning on 1 April 2000 as follows: Method statement Step 1. Work out under Division 3 for each of the employer's employees the individual fringe benefits amount for the year of tax in respect of the employment of the employee by the employer. Step 2. Add up all the individual fringe benefits amounts worked out under Step 1. Step 3. Add up the taxable value of every excluded fringe benefit (other than an amortised fringe benefit) relating to an employee of the employer, the employer and the year of tax. Note: Subsection 5E(3) explains what is an excluded fringe benefit. Step 4. Add the total from Step 2 to the total from Step 3. Note: The result of Step 4 is the employer's aggregate fringe benefits amount if there are no amortised fringe benefits or reducible fringe benefits in relation to the employer. Step 5. Add to the total from Step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax. Step 6. Subtract from the total from Step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax. (2) An employer's aggregate fringe benefits amount for the year of tax beginning on 1 April 2000 or a later year of tax is the sum of the employer's type 1 aggregate fringe benefits amount and the employer's type 2 aggregate fringe benefits amount for the year of tax. (3) Work out an employer's type 1 aggregate fringe benefits amount for a year of tax as follows. Method statement Step 1. Identify the fringe benefits in respect of each of the employer's employees that are GST‑creditable benefits (see section 149A), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits. Step 2. Add up all the individual fringe benefits amounts worked out under step 1. Step 3. Identify the excluded fringe benefits (other than an amortised fringe benefit) for the year of tax in respect of each of the employer's employees that are GST‑creditable benefits, and add up the taxable values of all those excluded fringe benefits. Note 1: Subsection 5E(3) explains what is an excluded fringe benefit. Note 2: Section 149A explains what is a GST‑creditable benefit. Step 4. Add the total from step 2 to the total from step 3. Note: The result of step 4 is the employer's type 1 aggregate fringe benefits amount if there are no amortised amounts in relation to the employer. Step 5. Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that are GST‑creditable benefits. The total amount is the employer's type 1 aggregate fringe benefits amount for the year of tax. Note: Section 65CA explains what is an amortised fringe benefit. (4) Work out an employer's type 2 aggregate fringe benefits amount for a year of tax as follows. Method statement Step 1. Identify, in respect of each of the employer's employees, the fringe benefits that are not taken into account under step 1 of the method statement in subsection (3), and work out under Division 3 for each of those employees the individual fringe benefits amount for the year of tax in relation to those fringe benefits. Step 2. Add up all the individual fringe benefits amounts worked out under step 1. Step 3. Identify, in respect of each of the employer's employees, the excluded fringe benefits (other than an amortised fringe benefit) for the year of tax that are not taken into account under step 3 of the method statement in subsection (3), and add up the taxable values of all those excluded fringe benefits. Note: Subsection 5E(3) explains what is an excluded fringe benefit. Step 4. Add the total from step 2 to the total from step 3. Note: The result of step 4 is the employer's type 2 aggregate fringe benefits amount if there are no amortised amounts or reducible fringe benefits in relation to the employer. Step 5. Add to the total from step 4 the amortised amount for the year of tax of each amortised fringe benefit (if any) relating to an employee of the employer, the employer and any year of tax that is not taken into account under step 5 of the method statement in subsection (3). Note 1: The result of step 5 is the employer's type 2 aggregate fringe benefits amount if there are no reducible fringe benefits in relation to the employer. Note 2: Section 65CA explains what is an amortised fringe benefit. Step 6. Subtract from the total from step 5 the reduction amount for the year of tax of each reducible fringe benefit (if any) relating to an employee of the employer, the employer and the year of tax. The total amount is the employer's type 2 aggregate fringe benefits amount for the year of tax. Note: Other provisions may affect the aggregate fringe benefits amount. For example, see section 67 (about arrangements to avoid or reduce tax), section 135L (about reducing the aggregate fringe benefits amount of an employer who is in business for only part of a year of tax) and section 152B (about entertainment facility leasing expenses). Division 3—Employee's individual fringe benefits amount 5D Simplified outline The following is a simplified outline of this Division: An employee's individual fringe benefits amount is the employee's share of the taxable value of fringe benefits (with some exclusions) provided in respect of his or her employment. 5E Employee's individual fringe benefits amount Overview (1) This section explains how to work out an employee's individual fringe benefits amount for a year of tax in respect of the employee's employment by an employer. General rule (2) The individual fringe benefits amount is the sum of the employee's share of the taxable value of each fringe benefit that relates to the year of tax and is provided in respect of the employment other than an excluded fringe benefit. What is an excluded fringe benefit? (3) An excluded fringe benefit is a fringe benefit: (a) that is: (i) constituted by the provision of meal entertainment (as defined in section 37AD, whether or not the employer has elected that Division 9A of Part III apply to the employer); and (ii) not provided under a salary packaging arrangement; or (b) that is a car parking fringe benefit (see subsection 136(1)); or (c) that is: (i) a benefit whose taxable value is wholly or partly attributable to entertainment facility leasing expenses; and (ii) not provided under a salary packaging arrangement; or (e) whose taxable value is worked out under section 59 (about remote area residential fuel); or (f) whose taxable value is reduced under section 60 (about remote area housing); or (g) that is an amortised fringe benefit (see subsection 136(1)); or (h) that is a reducible fringe benefit (see subsection 136(1)); or (i) that is a benefit prescribed by the regulations for the purposes of this paragraph; or (j) that relates to occasional travel to a major population centre in Australia provided to employees and family members resident in a location that is not in or adjacent to an eligible urban area; or (k) that relates to freight costs for foodstuffs provided to employees resident in a location that is not in or adjacent to an eligible urban area; or (l) that is provided to address a security concern: (i) relating to the personal safety of an employee, or an associate of an employee; and (ii) that arises in respect of the employee's employment. If section 135G applies to the employer (4) If: (a) section 135G applies for working out the employer's liability to pay tax for the year of tax; and (b) one or more fringe benefits are provided in relation to the year of tax in respect of the employee's employment by the employer; the employee's individual fringe benefits amount is the amount determined by the employer in writing. This subsection has effect despite subsection (2). Note: Section 135G allows use of the employer's aggregate fringe benefits amount for an earlier year of tax in working out the employer's liability for tax for the current year of tax. Determining individual fringe benefits amounts (5) In making a determination under subsection (4), the employer must: (a) ensure that the total of the amount or amounts determined by the employer under that subsection for the year of tax equals the aggregate fringe benefits amount used for working out the employer's liability to pay tax for the year of tax; and (b) if that subsection applies to 2 or more of the employer's employees for the year of tax—act reasonably, having regard to the fringe benefit or fringe benefits provided in relation to the year of tax in respect of each employee's employment. Security concerns relating to employees or associates (6) A fringe benefit referred to in paragraph (3)(l) is an excluded fringe benefit only to the extent that its provision is consistent with a threat assessment in relation to the employee or associate made by a person who is recognised by: (a) a relevant industry body or government body; or (b) the Commissioner; as competent to make threat assessments. 5F Working out the employee's share Overview (1) This section explains how to work out an employee's share of the taxable value of a fringe benefit relating to the employee, an employer and a year of tax. Individually‑valued benefit provided in respect of one employee (2) The employee's share is 100% of the taxable value if: (a) the fringe benefit was provided in respect of the employment of the employee by the employer and was not provided in respect of the employment of anyone else; and (b) the taxable value of the fringe benefit was worked out for that particular fringe benefit (not merely as part of the total taxable value of fringe benefits in a class including that particular benefit). Individually‑valued benefit shared by 2 or more employees (3) The employee's share is so much of the taxable value as is reasonably attributable to the provision of the fringe benefit in respect of the employee's employment by the employer, taking account of any relevant matters, if: (a) the fringe benefit was provided in respect of the employment of the employee by the employer and in respect of the employment of another employee; and (b) the taxable value of the fringe benefit was worked out for that particular fringe benefit (not merely as part of the total taxable value of fringe benefits in a class including that particular benefit). Benefits valued in aggregate (4) If: (a) the fringe benefit is one of a class of fringe benefits provided in respect of the employment of one or more employees by the employer; and (b) the total taxable value of all the fringe benefits in the class is worked out by a single calculation; the employee's share of the taxable value of the fringe benefit is so much of the total taxable value as is reasonably attributable to the provision of the fringe benefit in respect of the employee's employment by the employer, taking account of any relevant matters. Shares of different employees must total 100% of taxable value (5) If: (a) the fringe benefit was provided in respect of the employment of 2 or more employees; and (b) each of those employees has an employee's share of the taxable value of the fringe benefit; the sum of those shares must equal the taxable value of the fringe benefit. Single employee's shares must equal total taxable value (6) If all the fringe benefits in a class described in subsection (4) are provided in respect of the employment of the same employee (and none of them is provided in respect of the employment of anyone else), the sum of the employee's shares of the taxable value of the fringe benefits must equal the total taxable value of the fringe benefits. Part III—Fringe benefits Division 1—Preliminary 6 Part not to limit generality of benefit The provisions of this Part do not limit the generality of the expression benefit. Division 2—Car fringe benefits Subdivision A—Car benefits 7 Car benefits (1) Where: (a) at any time on a day, in respect of the employment of an employee, a car held by a person (in this subsection referred to as the provider): (i) is applied to a private use by the employee or an associate of the employee; or (ii) is taken to be available for the private use of the employee or an associate of the employee; and (b) either of the following conditions is satisfied: (i) the provider is the employer, or an associate of the employer, of the employee; (ii) the car is so applied or available, as the case may be, under an arrangement between: (A) the provider or another person; and (B) the employer, or an associate of the employer, of the employee; that application or availability of the car shall be taken to constitute a benefit provided on that day by the provider to the employee or associate in respect of the employment of the employee. (2) Where, at a particular time, the following conditions are satisfied in relation to an employee of an employer: (a) a car is held by a person, being: (i) the employer; (ii) an associate of the employer; or (iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car; (b) the car is garaged or kept at or near a place of residence of the employee or of an associate of the employee; the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be. (2A) Subsection (2) does not apply to a car that: (a) is used by an ambulance service, a firefighting service or a police service; and (b) is visibly marked on its exterior for that use; and (c) is fitted with: (i) a flashing warning light; and (ii) a horn, bell or alarm that can give audible warning of the approach or position of the car by making sounds with different amplitude, tones or frequencies on a regular time cycle. (3) Where, at a particular time, the following conditions are satisfied in relation to an employee of an employer: (a) a car is held by a person, being: (i) the employer; (ii) an associate of the employer; or (iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car; (b) the car is not at business premises of: (i) the employer; (ii) an associate of the employer; or (iii) a person (other than the employer or an associate of the employer) with whom, or in respect of whom, the employer or an associate of the employer has an arrangement relating to the use or availability of the car; (c) any of the following conditions is satisfied: (i) the employee is entitled to apply the car to a private use; (ii) the employee is not performing the duties of his or her employment and has custody or control of the car; (iii) an associate of the employee is entitled to use, or has custody or control of, the car; the car shall be taken, for the purposes of this Act, to be available at that time for the private use of the employee or associate, as the case may be. (4) For the purposes of subsection (3), where a prohibition on the application of a car, or on the application of a car for a private use, by a person is not consistently enforced, the person shall be deemed to be entitled to use the car, or to apply the car to a private use, notwithstanding the prohibition. (5) For the purposes of this Act, a car shall be deemed to be applied by a person if it is applied in accordance with the directions, instructions or wishes of the person. (6) For the purposes of this Division, a car that is let on hire to a person under a hire‑purchase agreement shall be deemed: (a) to have been purchased by the person at the time when the person first took the car on hire; and (b) to have been owned by the person at all material times. (7) A reference in this Division to a car held by a person (in this subsection referred to as the provider) does not include a reference to: (a) a car used for taxi travel (other than a limousine) let on hire to the provider; or (b) a car let on hire to the provider under an agreement of a kind ordinarily entered into by persons taking cars on hire intermittently as occasion requires on an hourly, daily, weekly or other short‑term basis unless the car has been or may reasonably be expected to be on hire under successive agreements of a kind that result in substantial continuity of the hiring of the car. 8 Exempt car benefits (1) Except insofar as section 7 provides that the application or availability of a car held by a person is a benefit, the application or availability of a car held by a person is an exempt benefit. (2) A car benefit provided in a year of tax in respect of the employment of a current employee is an exempt benefit in relation to the year of tax if: (a) the car is: (i) a panel van or utility truck, designed to carry a load of less than 1 tonne; or (ia) used for taxi travel, designed to carry a load of less than 1 tonne, and not a limousine; or (ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and (b) there was no private use of the car during the year of tax and at a time when the benefit was provided other than: (i) work‑related travel of the employee; and (ii) other private use by the employee or an associate of the employee, being other use that was minor, infrequent and irregular. (3) Where: (a) a car benefit relating to a particular car is provided by a particular person (in this subsection called the provider) in a year of tax in respect of the employment of a current employee of an employer; (b) at all times during the year of tax when the car was held by the provider, the car was unregistered; and (c) during the period in the year of tax when the car was held by the provider, the car was wholly or principally used directly in connection with business operations of: (i) the employer; or (ii) if the employer is a company—the employer or a company that is related to the employer; the car benefit is an exempt benefit in relation to the year of tax. (4) A car benefit is an exempt benefit in relation to a year of tax if: (a) the car benefit is provided in the year of tax in respect of the employment of a current employee; and (b) the person providing the benefit cannot deduct an amount under the Income Tax Assessment Act 1997 for providing the benefit because of section 86‑60 of that Act. Note: Section 86‑60 of the Income Tax Assessment Act 1997 (read together with section 86‑70 of that Act) limits the extent to which personal service entities can deduct car expenses. Deductions are not allowed for more than one car for private use. 8A Exempt car benefits: cars that are zero or low emissions vehicles (1) A car benefit is an exempt benefit in relation to a year of tax if: (a) the benefit is provided in the year of tax in respect of the employment of a current employee; and (b) the car is a zero or low emissions vehicle when the benefit is provided; and (c) no amount of luxury car tax (within the meaning of the A New Tax System (Luxury Car Tax) Act 1999) has become payable on a supply (within the meaning of that Act) or importation (within the meaning of that Act) of the car before the benefit is provided. (2) A zero or low emissions vehicle is: (a) a battery electric vehicle; or (b) a hydrogen fuel cell electric vehicle; or (c) a plug‑in hybrid electric vehicle. (3) A battery electric vehicle is a motor vehicle that: (a) uses only an electric motor for propulsion; and (b) is fitted with neither a fuel cell nor an internal combustion engine. (4) A hydrogen fuel cell electric vehicle is a motor vehicle that: (a) uses an electric motor for propulsion; and (b) is equipped with a fuel cell for converting hydrogen to electricity; and (c) is not fitted with an internal combustion engine. (5) A plug‑in hybrid electric vehicle is a motor vehicle that: (a) uses an electric motor for propulsion; and (b) takes and stores energy from an external source of electricity; and (c) is fitted with an internal combustion engine for either or both of the following: (i) the generation of electrical energy; (ii) propulsion of the vehicle. Subdivision B—Taxable value of car fringe benefits 9 Taxable value of car fringe benefits—statutory formula (1) Subject to this Part, where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a particular car held by a particular person (in this section referred to as the provider), the taxable value of that fringe benefit, or the aggregate of the taxable values of those fringe benefits, as the case may be, in relation to that year of tax, is the amount calculated in accordance with the formula: (2) For the purposes of this section: (a) the base value of the car is the sum of: (i) where, at the earliest holding time, the car was owned by the provider or an associate of the provider, the amount calculated in accordance with the formula AB, where: A is the cost price of the car to the provider or associate, as the case may be; and B is: (A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time—⅔; or (B) in any other case—1; and (ii) in a case to which subparagraph (i) does not apply—the amount calculated in accordance with the formula AB, where: A is the leased car value of the car at the earliest holding time; and B is: (A) in a case where the commencement of the year of tax is later than the fourth anniversary of the earliest holding time—⅔; or (B) in any other case—1; and (iii) the cost price of each non‑business accessory that: (A) was fitted to the car after the earliest holding time and before the end of the year of tax; and (B) remained fitted to the car at a time during the year of tax when the car was held by the provider; (b) the earliest holding time, in relation to a car held by the provider at a particular time (in this paragraph referred to as the current time), is the earliest time before the current time when the car was held by the provider or an associate of the provider; and (e) the amount of the recipient's payment is the sum of: (i) in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits—the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and (ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and: (A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date; the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and (ii) in a case where: (A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date; the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and (f) the holding period is the period in the year of tax when the car was held by the provider. 10 Taxable value of car fringe benefits—cost basis (1) An employer may, in relation to a particular car, elect that this section apply in relation to all the car fringe benefits in relation to the employer in relation to a year of tax that relate to that car. (2) Subject to this Part, where an election is made under subsection (1), the taxable value, or the aggregate of the taxable values, as the case requires, of the car fringe benefits in relation to the employer in relation to the year of tax that relate to the car while it was held by a particular person (in this section referred to as the provider) during a particular period (in this section referred to as the holding period) in the year of tax is the amount calculated in accordance with the formula: where: C is the operating cost of the car during the holding period; BP is: (a) if, under section 10A or 10B, the employer is not entitled to a reduction in the operating cost of the car on account of business journeys undertaken in the car during the holding period—nil; or (c) in any other case—the business use percentage applicable to the car for the holding period; and R is the amount (if any) of the recipient's payment. (3) For the purposes of subsection (2): (a) the operating cost of the car during the holding period is the sum of: (i) any car expenses (other than insured repair expenses or expenses in respect of registration and insurance) relating to the car incurred during the holding period (whether the expenses are incurred by the provider or by any other person), not including, in a case where the car is leased to the provider, any car expenses incurred by the lessor pursuant to the lease agreement; and (ii) so much of any expense paid or payable in respect of the registration of, or insurance in respect of, the car as is attributable to the holding period (whether the expenses are incurred by the provider or by any other person), not including: (A) in a case where the car is owned by the provider—any expense incurred before the provider became the owner of the car; or (B) in a case where the car is leased to the provider—any expense incurred by the lessor pursuant to the lease agreement; and (iii) in a case where the car is owned by the provider: (A) the amount of depreciation that is deemed to have been incurred by the provider in respect of the car in respect of the holding period; and (B) the amount of interest that is deemed to have been incurred by the provider in respect of the car in respect of the holding period; and (iv) in a case where the car is owned by the provider and a non‑business accessory was fitted to the car during the period when the car was owned by the provider and remained fitted to the car at a time during the holding period: (A) the amount of depreciation that would be deemed to have been incurred by the provider in respect of the accessory in respect of the holding period if the accessory were a car; and (B) the amount of interest that would be deemed to have been incurred by the provider in respect of the accessory in respect of the holding period if the accessory were a car; and (v) in a case where the car is leased to the provider: (A) where sub‑subparagraph (B) does not apply—so much of the charges paid or payable under the lease agreement as are attributable to the holding period; or (B) where the lessor was entitled to privileges or exemptions in relation to customs duty in respect of a transaction by which the lessor purchased the car—the amount that could reasonably be expected to have been applicable under sub‑subparagraph (A) if the lessor had not been entitled to those privileges or exemptions; and (vi) in a case where the car is neither owned by, nor leased to, the provider—the amount of depreciation and interest that would be deemed to have been incurred by the provider in respect of the car in respect of the holding period if the car had been purchased by the provider at the time when the provider commenced to hold the car for a consideration equal to the leased car value of the car at that time; and (c) the amount of the recipient's payment is the sum of: (i) in a case where expenses were incurred to the provider or employer during the holding period by recipients of the car fringe benefits by way of consideration for the provision of the car fringe benefits—the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and (ia) in a case where car expenses in respect of fuel or oil for the car were incurred during the holding period by recipients of the car fringe benefits and: (A) the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Commissioner, in respect of those expenses; or (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date; the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses; and (ii) in a case where: (A) car expenses in respect of the car (other than car expenses in respect of fuel or oil for the car) were incurred during the holding period by recipients of the car fringe benefits; and (B) documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date; the amount of those expenses paid by the recipients less any amount paid or payable to the recipients by way of reimbursement of those expenses. (3A) A reference in subparagraph (3)(a)(i) to an insured repair expense relating to a car is a reference to: (a) so much of an expense incurred in respect of repairs to the car as does not exceed an amount: (i) received by way of insurance in respect of the repairs by the person incurring the expense; (ii) paid by way of insurance in respect of the repairs in discharge of the obligation of the insured to pay the expense; (iii) received by way of compensation in respect of the repairs by the person incurring the expense from the person legally responsible for the damage to the car; or (iv) paid by way of compensation in respect of the repairs by the person legally responsible for the damage to the car in discharge of the obligation of the person incurring the expense to pay the expense; or (b) an expense incurred in respect of repairs to the car: (i) by an insurer under a contract of insurance; or (ii) by way of compensation by the person legally responsible for the damage to the car. (3B) Where, in accordance with subsection 162K(2), the identity of a car changes one or more times during the period (in this subsection called the overall holding period) that, apart from that subsection, would be the holding period, the operating cost of the car during each period (in this subsection called a statutory holding period) that is a holding period in relation to the car when the car had a separate identity is so much of the amount that would have been the operating cost of the car during the overall holding period (assuming that the identity of the car had not changed during the overall holding period) as is attributable to the statutory holding period. (3C) Where, in accordance with subsection 162K(2), the identity of a car changes one or more times during the period (in this subsection called the overall holding period) that, apart from that subsection, would be the holding period, the recipient's payment in relation to each period (in this subsection called a statutory holding period) that is a holding period in relation to the car when the car had a separate identity is so much of the amount that would have been the recipient's payment in relation to the overall holding period (assuming that the identity of the car had not changed during the overall holding period) as is attributable to the statutory holding period. (3D) In determining, for the purposes of this section, whether: (a) an expense is paid or payable in respect of the registration of, or insurance in respect of, a car; or (b) a charge is paid or payable under a lease agreement in respect of a car; or (c) a lessor of a car is entitled to privileges or exemptions in relation to customs duty in respect of a transaction by which the lessor purchased the car; a change, in accordance with subsection 162K(2), to the identity of the car shall be disregarded. (4) An election by an employer under subsection (1) in relation to a year of tax: (a) shall be made by notice in writing to the Commissioner; and (b) shall be lodged with the Commissioner on or before the declaration date. (5) Where: (a) an employer elects that this section apply in relation to all the car fringe benefits in relation to the employer in relation to a year of tax that relate to a particular car; and (b) the taxable value, or the aggregate of the taxable values, as the case requires, of the car fringe benefits that relate to the car ascertained under subsection (2) of this section exceeds the taxable value, or the aggregate of the taxable values, as the case requires, that would have been ascertained under section 9 if that election had not been made; this Act (other than section 162G) applies, and shall be deemed always to have applied, for the purposes of ascertaining that taxable value, or the aggregate of those taxable values, as the case requires, as if that election had not been made. (6) Nothing in section 74 prevents the amendment of an assessment for the purpose of giving effect to subsection (5). 10A No reduction of operating cost in a log book year of tax unless log book records and odometer records are maintained Where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a car while it was held by a particular person (in this section called the provider) during a particular period (in this section called the holding period) in a year of tax that is a log book year of tax of the employer in relation to the car, the employer is entitled to a reduction in the operating cost of the car on account of business journeys undertaken in the car during the holding period if, and only if: (a) log book records and odometer records are maintained by or on behalf of the provider for an applicable log book period in relation to the car; and (b) odometer records are maintained by or on behalf of the provider for the holding period; and (c) if the provider is not the employer—those log book records and odometer records are given to the employer before the declaration date; and (d) the employer specifies the employer's estimate of the number of business kilometres travelled by the car during the holding period; and (e) the employer specifies a percentage as the business use percentage applicable to the car in relation to the provider for the holding period. 10B No reduction of operating cost in a non‑log book year of tax unless log book records and odometer records are maintained in log book year of tax Where one or more car fringe benefits in relation to an employer in relation to a year of tax relate to a car while it was held by a particular person (in this section called the provider) during a particular period (in this section called the holding period) in a year of tax that is not a log book year of tax of the employer in relation to the car, the employer is entitled to a reduction in the operating cost of the car on account of business journeys undertaken during the holding period in the car if, and only if: (a) odometer records are maintained by or on behalf of the provider in relation to the car for the holding period and, if the provider is not the employer, are given to the employer before the declaration date; and (b) the employer specifies the employer's estimate of the number of business kilometres travelled by the car in the holding period; and (c) the employer specifies the business use percentage applicable to the car in relation to the provider for the holding period. 11 Calculation of depreciation and interest (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 t