24 Feb 11 FBT: meaning of "cost price" in calculating the taxable value of car fringe benefits - TR 2011/D1
On 23 February 2011, the ATO issued draft Taxation Ruling TR 2011/D1, entitled "Fringe benefits tax: meaning of 'cost price' of a car, for the purpose of calculating the taxable value of car fringe benefits". The closing date for comments is 8 April 2011.
The draft Ruling sets out the Commissioner's views on how the following arrangements may affect the amount of "expenditure incurred by a person that is directly attributable to the acquisition or delivery of a car", for the purposes of sub-subparagraph (a)(ii)(A) of the definition of "cost price" of a car in s 136(1) of the Fringe Benefits Tax Assessment Act 1986:
- a trade-in vehicle provided by an employee towards the purchase of a car;
- an up front cash payment made by an employee towards the purchase of a car; and
- fleet discounts, sales incentives and manufacturers' rebates.