Bankruptcy Regulations 2021

Subject to this Part, where one or more car fringe benefits in relation to an employer in relation to a contribution assessment period relate to a particular car held by a particular person (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 contribution assessment period, is the amount calculated in accordance with the formula:

For the purposes of this section:

the base value of the car is the sum of:

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:

in a case where the commencement of the contribution assessment period is later than the fourth anniversary of the earliest holding time—⅔; or

in any other case—1; and

in a case to which subparagraph (i) does not apply—the amount calculated in accordance with the formula AB, where:

in a case where the commencement of the contribution assessment period is later than the fourth anniversary of the earliest holding time—⅔; or

in any other case—1; and

the cost price of each non‑business accessory that:

was fitted to the car after the earliest holding time and before the end of the contribution assessment period; and

remained fitted to the car at a time during the contribution assessment period when the car was held by the provider;

the earliest holding time, in relation to a car held by the provider at a particular time (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

the amount of the recipient’s payment is the sum of:

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

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 the persons incurring those expenses give to the employer, before the declaration date, declarations, in a form approved by the Inspector‑General under section 6D of the Bankruptcy Act 1966, in respect of those expenses—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

in a case where:

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

documentary evidence of those expenses is obtained by the persons incurring the expenses and given to the employer before the declaration date;

the holding period is the period in the contribution assessment period when the car was held by the provider.

Christopher was declared bankrupt on 1 July 2020.

In this section: