Private ruling: Company - logbook requirement
Date of advice: 18 October 2023
Published: 27 November 2023
Ruling period: Year ended 30 June 2022 | Year ended 30 June 2023
Date scheme commenced: 1 July 2021

Ruling: Q1: Is the taxpayer required to maintain a logbook for each vehicle it owns? | A1: No, if you operate an activity as a company, no logbook is required for each vehicle if the vehicle is not used for a private purpose by a director or shareholder or their associate or an employee of the company. You stated the vehicles are not used for any private use. Therefore, no logbook is required to be maintained. If a private company provides a vehicle to its director, shareholder or their associate or an employee and the vehicle is used for private use by any of these persons in their respective capacity, a logbook may be required to be maintained. The private usage of the vehicle may affect the deductibility of expenses incurred and may attract other tax obligations such as Division 7A and Fringe Benefit Tax.

Relevant facts and circumstances: You are a private company registered in Australia with the Australian Securities and Investment Commission (ASIC). You are carrying on a rental activity. You have acquired a number of vehicles that are exclusively used for your activity. The vehicles are parked at one location when they are not rented out. None of the vehicles are used for the private use of a director, shareholder or their associate or an employee of the private company.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 8-1