Class Ruling CR 2017/65
Date of effect: 1 July 2017

What this ruling is about: 1. This Ruling sets out the Commissioner's opinion on the way in which the relevant provision(s) identified below apply to the defined class of entities, who take part in the scheme to which this Ruling relates. Relevant provisions 2. The relevant provisions dealt with in this Ruling are: All references in this Ruling are to the FBTAA unless otherwise stated. Class of entities 3. The class of entities to which this Ruling applies is those employers who use the EzyCarLog 'mobile Application Logbook Solution', (hereafter referred to as, 'EzyCarLog Solution'), a system for car log book record and odometer record keeping requirements. Qualifications 4. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 5. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 27 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then:

Class of entities or scheme: 3. The class of entities to which this Ruling applies is those employers who use the EzyCarLog 'mobile Application Logbook Solution', (hereafter referred to as, 'EzyCarLog Solution'), a system for car log book record and odometer record keeping requirements. | Qualifications: 4. The Commissioner makes this Ruling based on the precise scheme identified in this Ruling. 5. The class of entities defined in this Ruling may rely on its contents provided the scheme actually carried out is carried out in accordance with the scheme described in paragraphs 8 to 27 of this Ruling. 6. If the scheme actually carried out is materially different from the scheme that is described in this Ruling, then: 7. This Ruling applies from 1 July 2017 to 30 June 2022. The Ruling continues to apply after 30 June 2022 to all entities within the specified class who entered into the specified scheme during the term of the Ruling. However, this Ruling will not apply to taxpayers to the extent that it conflicts with the terms of a settlement of a dispute agreed to before the date of issue of this Ruling (see paragraphs 75 and 76 of Taxation Ruling TR 2006/10). 8. The following description of the scheme is based on information provided by the applicant. Note: certain information has been provided on a commercial-in-confidence basis and will not be disclosed or released under Freedom of Information legislation. 9. The EzyCarLog Solution is a smart phone based mobile application platform which can be used to log the journeys of a car during a pre-determined period. EzyCarLog Solution offers a default 12 week period but allows the log book to record any period of time as determined by the user. 10. EzyCarLog Solution consists of: 11. The APP includes a Global Positioning System (GPS) feature that is able to monitor the position of the car so as to determine the car's journeys. It also records the start and stop times of the journeys and calculates the distance travelled in each of the journeys. 12. The APP contains a GPS module (movement sensors), to ensure the APP cannot be used whilst the car is in motion. 13. The user is prompted to enter the following information upon receiving the APP prior to commencing the first trip for which the APP is used: 14. The APP commences recording data when the user selects a journey to begin. The recorded data is saved onto the device memory with identifiers including the time and date of each capture. The recorded data is then automatically sent using a wireless mobile connection to the Platform. The APP provides a feature for the journey information to be entered manually when coverage on the mobile network is not available. 15. The user provides information to set the user account at the time of registration. This information includes the following: 16. The information is stored securely on the Platform. 17. The APP is available to receive journey information at any time after it is activated and when it is operating. 18. The Platform processes the transmissions and generates a log for the specific device which represents the individual driver. Part of the processing includes collation of various transmissions to create individual trips referred to in your application as a Trip Log. 19. A Trip Log is classified prior to the commencement of the journey. The Trip Log appears in the APP for the driver to review each trip and confirm classification of the journey. At the end of Trip Log, the user receives an in-device notification prompt to reconfirm the classification and record the purpose of the journey. 20. The APP allows the user to view, review and report on all data. The journey identifies the user's classification of the trip as either business or personal using the available selection menu. There is also a graphical display of the current business use percentage based on the Trip Logs that have already been classified. 21. The EzyCarLog Solution compiles information from the Trip Logs to produce a log book report (Journey Report) providing the following information: 22. The report is produced in English and can be exported in a variety of formats such as .csv and .pdf. 23. The user is prompted to enter the odometer reading displayed on the car's odometer at the commencement of the journey. The Platform then determines any variance between the closing odometer reading determined by the GPS as compared to the car's odometer reading entered by the user. 24. The user is notified and a correction sought if the variance between the total distance measured by the GPS and the car's odometer reading is greater than a pre-determined variance. 25. The APP calculates and displays 'business use percentage' and 'personal use percentage' with the percentage calculated using the following formula: | Business Percentage: Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period * 100 | Personal Percentage: Number of personal kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period * 100 26. The EzyCarLog Solution calculates both the number of business kilometres and the total number of kilometres travelled by the car during the holding period where it is used continuously for the whole of the period of the year for which the car is held thereby calculating the business use percentage for the holding period. 27. Where EzyCarLog Solution is not continuously used for the whole of the period of the year for which the car is held, the system will not record the number of business kilometres travelled during the holding period nor the total number of kilometres travelled during the holding period. The user will need to separately determine the business use percentage using the estimated number of business kilometres and the odometer readings for the beginning and end of the holding period. 28. The Journey Report created by the EzyCarLog Solution is a document that satisfies the definition of 'log book records' in subsection 136(1) provided: 29. The report created by the EzyCarLog Solution is a document that satisfies the definition of 'odometer records' in subsection 136(1). 30. An employer in a log book year of tax who uses the EzyCarLog Solution continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs. 31. An employer in a log book year of tax who uses the EzyCarLog Solution continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs provided the employer: 32. An employer in a non-log book year of tax that uses the EzyCarLog Solution continuously for the whole of the holding period (as defined in section 162C), satisfies the requirements in section 10B and is entitled to claim a reduction of operating costs. 33. An employer in a non-log book year of tax who has used the EzyCarLog Solution in one of the previous four FBT years continuously for an 'applicable log book period but: satisfies the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys undertaken in the car during the holding period provided the employer: Commissioner of Taxation 20 September 2017 | What is the operating cost method under section 10?: 34. Section 10 of the FBTAA allows employers to elect to calculate the taxable value of a car fringe benefit using the cost basis method (operating cost method). 35. Where the election is made, the taxable value of the car fringe benefit using the operating cost method is calculated according to the following formula in subsection 10(2) of the FBTAA: 36. Therefore, employers intending to claim a reduction in the operating cost of a car, on account of business journeys undertaken during the holding period, must meet the requirements of either section 10A of the FBTAA (if the year is a log book year of tax) or section 10B of the FBTAA (if the year is not a log book year of tax), as applicable. | Does the EzyCarLog Solution satisfy the requirements of section 10A?: 37. Section 10A states: 38. Section 162G of the FBTAA sets out various circumstances under which a particular year can be treated as a 'log book year of tax'. It is accepted that all employers using the EzyCarLog Solution will elect under paragraph 162G(1)(b) of the FBTAA to treat a current year of tax as a 'log book year of tax'. | Does the Journey Report created by the EzyCarLog Solution satisfy the requirements of the definition of 'log book records' under subsection 136(1)?: 39. Subsection 136(1) of the FBTAA defines 'log book records' as: 40. Paragraph (c) of the definition of 'log book records' requires the date on which the journey began and ended to be entered in the relevant records. The EzyCarLog Solution records the start and end dates and times of each journey and this information is detailed in the Journey Report. Therefore, this requirement is satisfied. 41. Paragraph (d) of the definition of 'log book records', requires the respective odometer readings of the car at the beginning and at the end of the journey be entered into the relevant records. 42. The term 'odometer' is not defined in either the FBTAA or the Income Tax Assessment Act 1997 but the Macquarie Dictionary, online edition, defines that term as being, 'an instrument for measuring distance passed over, as by a motor vehicle'. 43. The term 'odometer records', as defined in subsection 136(1) of the FBTAA makes reference to 'odometer reading of the car'. Whilst odometer readings must pertain to the car, it does not necessarily mean that they must also be attributable either wholly or in part to the rotation of the car's wheels, thereby mechanically moving the standard odometer fitted in the car by the manufacturer. 44. Provided the GPS device used to determine the car's odometer readings is of sufficient integrity, it is accepted that a system other than the car's own odometer may meet the FBTAA legislative requirements. 45. The user is prompted to enter the odometer reading displayed on the car's odometer onto the APP upon commencement of the relevant journey. The Platform will then determine whether there is any variance between the closing odometer reading determined by the GPS as compared to the car's odometer reading entered by the user. The user will be notified of any variance and a correction sought. The closing odometer reading is determined by the GPS. It is accepted that the opening and closing odometer readings calculated in this way is of sufficient integrity to be odometer readings of the car. 46. It is accepted that the opening and closing odometer readings for each car journey detailed in the Journey Report satisfies the requirements of paragraph (d) of the definition of 'log book records'. 47. The number of kilometres travelled by the car in the course of each journey is also detailed in the Journey Report thus satisfying the requirement in paragraph (e) of the definition of 'log book records'. 48. Paragraph (f) of the definition of 'log book records' requires the purpose or purposes of the business journeys to be recorded. Further, the definition of log book records requires that entries be made at or as soon as reasonably practicable after the end of the journey. 49. The business or private use journey classification details are input by the driver at the commencement and reconfirmed at the conclusion of the journey using the EzyCarLog Solution APP. At the end of each journey the driver will receive an in-device notification prompt to reconfirm the classification and record the purpose of the journey. The APP allows the user to view, review and report on all data. 50. It is expected that the reason recorded for each business journey is sufficiently descriptive so as to enable the journey to be classified as a business journey and that the relevant classification and description will be made at the end of each journey or as soon as reasonably practicable thereafter. Provided this occurs within a week of the journey occurring, it will be accepted that the entry was made as soon as practicable after the end of the journey. 51. It is accepted that the EzyCarLog Solution Journey Report satisfies the requirements in paragraph (f) of the definition in 136(1). 52. It is considered that the EzyCarLog Solution and Journey Report is 'a daily log book or similar document' that satisfies the requirement of being made in the English language at or as soon as reasonably practicable after the end of the journey. 53. The Journey Report generated by the EzyCarLog Solution satisfies the definition of 'log book records' in subsection 136(1) provided the report is completed for an 'applicable log book period'. | Are the records maintained for an 'applicable log book period'?: 54. The definition of 'log book records' in subsection 136(1) also requires that each business journey recorded in the log book records be in relation to a 'period'. Paragraph 10A(a) refers to 'log book records' being maintained for an 'applicable log book period'. 55. The term 'applicable log book period' is defined in subsection 162H(1) of the FBTAA as follows: 56. The Journey Reports that are generated by the EzyCarLog Solution must be for a minimum 12 week period. The log book beginning and end date is displayed on the printed log book. It is accepted that in the absence of evidence to the contrary in a particular case, all employers using the EzyCarLog Solution in relation to any car fringe benefits that they provide will maintain the necessary records for the duration of the 'applicable log book period' (as that latter term is defined in subsection 162H(1)). | Do the Reports created by the EzyCarLog Solution satisfy the requirements of the definition of 'odometer records' under subsection 136(1)?: 57. The term 'odometer records' is defined in subsection 136(1) of the FBTAA as: 58. The definition of 'odometer records' in subsection 136(1) of the FBTAA, requires that odometer readings be recorded both at the 'commencement' and at the 'end' of the periods. 59. The EzyCarLog Solution provides a report which details the odometer reading for the car at the start of the first recorded journey and also the odometer reading for the car at the end of the last recorded journey that were undertaken during each report period. 60. As stated at paragraph 56 of this Ruling, it is accepted that in the absence of evidence to the contrary in a particular case, all employers using the EzyCarLog Solution journey will maintain the necessary records for the 'applicable log book period'. 61. A report can be generated at the end of the log book period showing the odometer recordings made and the type of journey undertaken. It is accepted that a EzyCarLog Solution report meets the necessary requirement of having entries made in English at or as soon as reasonably practicable after the end of the journey. 62. It is considered that the EzyCarLog Solution satisfies all the relevant requirements of the definition of 'odometer records' as defined in subsection 136(1) of the FBTAA. | Does the EzyCarLog Solution report provide odometer records for the holding period?: 63. Paragraph 10A(b) requires odometer records to be maintained for the holding period as defined in section 162C. 64. The EzyCarLog Solution report will provide odometer records for the period of the year in which the system is used. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will provide the odometer records for the holding period. 65. However, if the system is not continuously used for the whole of the period of the year for which the car is held, the reports will not provide both the start and end odometer readings for the holding period. For example, if the car is held for the full year but the EzyCarLog Solution is only used for the first 12 weeks of the year, the reports will only provide the odometer reading as at the start of the holding period. The reports will not provide the odometer reading for the end of the year (the end of the holding period). Therefore, in such a situation, the odometer reading at the end of the period will need to be separately recorded for the reports to provide odometer records for the holding period. | Does the EzyCarLog Solution enable the employer to estimate the number of business kilometres travelled during the holding period in a log book year of tax?: 66. Paragraph 10A(d) requires the employer to estimate the number of business kilometres travelled by the car during the holding period. This estimate is used to calculate the business use percentage required by paragraph 10A(e). 67. The basis used to estimate the number of business kilometres is set out in section 162F which states: 68. The EzyCarLog Solution uses the calculations of the kilometres travelled on the journeys classified as being a business journey during the period for which the system is used to calculate the total number of business kilometres travelled during the period. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will enable the employer to estimate the number of business kilometres travelled during the holding period. 69. However, where the EzyCarLog Solution is not continuously used for the whole of the period of the year for which the car is held, the number of business kilometres recorded in the report will only be the business kilometres travelled during the period in which the system is used. In such a situation, the employer in estimating the number of business kilometres travelled during the holding period, will need to take all relevant matters into account including the Journey Report, odometer records and any variations in the pattern of use of the car. | Does the EzyCarLog Solution enable the employer to specify the business use percentage for the holding period in a log book year of tax?: 70. Subsection 136(1) defines 'business use percentage' to mean the percentage worked out using the formula: [Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period] * 100% 71. Where the EzyCarLog Solution is used continuously for the whole of the period of the year for which the car is held, it will calculate both the number of business kilometres and the total number of kilometres travelled by the car during the holding period. Using these calculations, the report provides the business use percentage for the holding period. 72. However, where the EzyCarLog Solution is not continuously used for the whole of the period of the year for which the car is held, the system will not record the number of business kilometres travelled during the holding period, nor the total number of kilometres travelled during the holding period. Therefore, in such a situation it will be necessary for the employer to separately determine the business use percentage using the estimated number of business kilometres and the odometer readings for the beginning and end of the holding period. | Conclusion on whether the EzyCarLog Solution satisfies the requirements of section 10A: 73. Where the EzyCarLog Solution is used continuously for the whole of the period of the year for which the car is held, the reports generated by the EzyCarLog Solution for that period will meet all the necessary requirements of section 10A. 74. Where the EzyCarLog Solution is not used continuously for the whole of the period of the year for which the car is held, the reports will not by itself satisfy the requirements of section 10A that are in respect of the holding period. To satisfy these requirements, an employer will need to: | Does the EzyCarLog Solution satisfy the requirements of section 10B?: 75. Section 10B states: 76. Where the EzyCarLog Solution is used continuously for the whole of the holding period, the reports will meet all the necessary requirements of section 10B in a non-log book year of tax as: 77. An employer in a non-log book year of tax who does not use the EzyCarLog Solution in that year of tax or does not use it for the whole of the period that the car is held but has used the system in one of the previous four FBT years continuously for an 'applicable log book period', will not by itself satisfy the requirements of section 10B. The employer will also need to: 78. The following is a detailed contents list for this Ruling: © AUSTRALIAN TAXATION OFFICE FOR THE COMMONWEALTH OF AUSTRALIA You are free to copy, adapt, modify, transmit and distribute this material as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products). Not previously issued as a draft

Ruling: 28. The Journey Report created by the EzyCarLog Solution is a document that satisfies the definition of 'log book records' in subsection 136(1) provided: 29. The report created by the EzyCarLog Solution is a document that satisfies the definition of 'odometer records' in subsection 136(1). 30. An employer in a log book year of tax who uses the EzyCarLog Solution continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs. 31. An employer in a log book year of tax who uses the EzyCarLog Solution continuously for: satisfies the requirements in section 10A and is entitled to claim a reduction of operating costs provided the employer: 32. An employer in a non-log book year of tax that uses the EzyCarLog Solution continuously for the whole of the holding period (as defined in section 162C), satisfies the requirements in section 10B and is entitled to claim a reduction of operating costs. 33. An employer in a non-log book year of tax who has used the EzyCarLog Solution in one of the previous four FBT years continuously for an 'applicable log book period but: satisfies the requirements in section 10B and will be entitled to claim a reduction of operating costs of the car on account of business journeys undertaken in the car during the holding period provided the employer: Commissioner of Taxation 20 September 2017


Appendix: What is the operating cost method under section 10?: 34. Section 10 of the FBTAA allows employers to elect to calculate the taxable value of a car fringe benefit using the cost basis method (operating cost method). 35. Where the election is made, the taxable value of the car fringe benefit using the operating cost method is calculated according to the following formula in subsection 10(2) of the FBTAA: 36. Therefore, employers intending to claim a reduction in the operating cost of a car, on account of business journeys undertaken during the holding period, must meet the requirements of either section 10A of the FBTAA (if the year is a log book year of tax) or section 10B of the FBTAA (if the year is not a log book year of tax), as applicable. | Does the EzyCarLog Solution satisfy the requirements of section 10A?: 37. Section 10A states: 38. Section 162G of the FBTAA sets out various circumstances under which a particular year can be treated as a 'log book year of tax'. It is accepted that all employers using the EzyCarLog Solution will elect under paragraph 162G(1)(b) of the FBTAA to treat a current year of tax as a 'log book year of tax'. | Does the Journey Report created by the EzyCarLog Solution satisfy the requirements of the definition of 'log book records' under subsection 136(1)?: 39. Subsection 136(1) of the FBTAA defines 'log book records' as: 40. Paragraph (c) of the definition of 'log book records' requires the date on which the journey began and ended to be entered in the relevant records. The EzyCarLog Solution records the start and end dates and times of each journey and this information is detailed in the Journey Report. Therefore, this requirement is satisfied. 41. Paragraph (d) of the definition of 'log book records', requires the respective odometer readings of the car at the beginning and at the end of the journey be entered into the relevant records. 42. The term 'odometer' is not defined in either the FBTAA or the Income Tax Assessment Act 1997 but the Macquarie Dictionary, online edition, defines that term as being, 'an instrument for measuring distance passed over, as by a motor vehicle'. 43. The term 'odometer records', as defined in subsection 136(1) of the FBTAA makes reference to 'odometer reading of the car'. Whilst odometer readings must pertain to the car, it does not necessarily mean that they must also be attributable either wholly or in part to the rotation of the car's wheels, thereby mechanically moving the standard odometer fitted in the car by the manufacturer. 44. Provided the GPS device used to determine the car's odometer readings is of sufficient integrity, it is accepted that a system other than the car's own odometer may meet the FBTAA legislative requirements. 45. The user is prompted to enter the odometer reading displayed on the car's odometer onto the APP upon commencement of the relevant journey. The Platform will then determine whether there is any variance between the closing odometer reading determined by the GPS as compared to the car's odometer reading entered by the user. The user will be notified of any variance and a correction sought. The closing odometer reading is determined by the GPS. It is accepted that the opening and closing odometer readings calculated in this way is of sufficient integrity to be odometer readings of the car. 46. It is accepted that the opening and closing odometer readings for each car journey detailed in the Journey Report satisfies the requirements of paragraph (d) of the definition of 'log book records'. 47. The number of kilometres travelled by the car in the course of each journey is also detailed in the Journey Report thus satisfying the requirement in paragraph (e) of the definition of 'log book records'. 48. Paragraph (f) of the definition of 'log book records' requires the purpose or purposes of the business journeys to be recorded. Further, the definition of log book records requires that entries be made at or as soon as reasonably practicable after the end of the journey. 49. The business or private use journey classification details are input by the driver at the commencement and reconfirmed at the conclusion of the journey using the EzyCarLog Solution APP. At the end of each journey the driver will receive an in-device notification prompt to reconfirm the classification and record the purpose of the journey. The APP allows the user to view, review and report on all data. 50. It is expected that the reason recorded for each business journey is sufficiently descriptive so as to enable the journey to be classified as a business journey and that the relevant classification and description will be made at the end of each journey or as soon as reasonably practicable thereafter. Provided this occurs within a week of the journey occurring, it will be accepted that the entry was made as soon as practicable after the end of the journey. 51. It is accepted that the EzyCarLog Solution Journey Report satisfies the requirements in paragraph (f) of the definition in 136(1). 52. It is considered that the EzyCarLog Solution and Journey Report is 'a daily log book or similar document' that satisfies the requirement of being made in the English language at or as soon as reasonably practicable after the end of the journey. 53. The Journey Report generated by the EzyCarLog Solution satisfies the definition of 'log book records' in subsection 136(1) provided the report is completed for an 'applicable log book period'. | Are the records maintained for an 'applicable log book period'?: 54. The definition of 'log book records' in subsection 136(1) also requires that each business journey recorded in the log book records be in relation to a 'period'. Paragraph 10A(a) refers to 'log book records' being maintained for an 'applicable log book period'. 55. The term 'applicable log book period' is defined in subsection 162H(1) of the FBTAA as follows: 56. The Journey Reports that are generated by the EzyCarLog Solution must be for a minimum 12 week period. The log book beginning and end date is displayed on the printed log book. It is accepted that in the absence of evidence to the contrary in a particular case, all employers using the EzyCarLog Solution in relation to any car fringe benefits that they provide will maintain the necessary records for the duration of the 'applicable log book period' (as that latter term is defined in subsection 162H(1)). | Do the Reports created by the EzyCarLog Solution satisfy the requirements of the definition of 'odometer records' under subsection 136(1)?: 57. The term 'odometer records' is defined in subsection 136(1) of the FBTAA as: 58. The definition of 'odometer records' in subsection 136(1) of the FBTAA, requires that odometer readings be recorded both at the 'commencement' and at the 'end' of the periods. 59. The EzyCarLog Solution provides a report which details the odometer reading for the car at the start of the first recorded journey and also the odometer reading for the car at the end of the last recorded journey that were undertaken during each report period. 60. As stated at paragraph 56 of this Ruling, it is accepted that in the absence of evidence to the contrary in a particular case, all employers using the EzyCarLog Solution journey will maintain the necessary records for the 'applicable log book period'. 61. A report can be generated at the end of the log book period showing the odometer recordings made and the type of journey undertaken. It is accepted that a EzyCarLog Solution report meets the necessary requirement of having entries made in English at or as soon as reasonably practicable after the end of the journey. 62. It is considered that the EzyCarLog Solution satisfies all the relevant requirements of the definition of 'odometer records' as defined in subsection 136(1) of the FBTAA. | Does the EzyCarLog Solution report provide odometer records for the holding period?: 63. Paragraph 10A(b) requires odometer records to be maintained for the holding period as defined in section 162C. 64. The EzyCarLog Solution report will provide odometer records for the period of the year in which the system is used. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will provide the odometer records for the holding period. 65. However, if the system is not continuously used for the whole of the period of the year for which the car is held, the reports will not provide both the start and end odometer readings for the holding period. For example, if the car is held for the full year but the EzyCarLog Solution is only used for the first 12 weeks of the year, the reports will only provide the odometer reading as at the start of the holding period. The reports will not provide the odometer reading for the end of the year (the end of the holding period). Therefore, in such a situation, the odometer reading at the end of the period will need to be separately recorded for the reports to provide odometer records for the holding period. | Does the EzyCarLog Solution enable the employer to estimate the number of business kilometres travelled during the holding period in a log book year of tax?: 66. Paragraph 10A(d) requires the employer to estimate the number of business kilometres travelled by the car during the holding period. This estimate is used to calculate the business use percentage required by paragraph 10A(e). 67. The basis used to estimate the number of business kilometres is set out in section 162F which states: 68. The EzyCarLog Solution uses the calculations of the kilometres travelled on the journeys classified as being a business journey during the period for which the system is used to calculate the total number of business kilometres travelled during the period. Therefore, where the system is used continuously for the whole of the period of the year for which the car is held, the report will enable the employer to estimate the number of business kilometres travelled during the holding period. 69. However, where the EzyCarLog Solution is not continuously used for the whole of the period of the year for which the car is held, the number of business kilometres recorded in the report will only be the business kilometres travelled during the period in which the system is used. In such a situation, the employer in estimating the number of business kilometres travelled during the holding period, will need to take all relevant matters into account including the Journey Report, odometer records and any variations in the pattern of use of the car. | Does the EzyCarLog Solution enable the employer to specify the business use percentage for the holding period in a log book year of tax?: 70. Subsection 136(1) defines 'business use percentage' to mean the percentage worked out using the formula: [Number of business kilometres travelled by the car during the holding period / Total number of kilometres travelled by the car during the holding period] * 100% 71. Where the EzyCarLog Solution is used continuously for the whole of the period of the year for which the car is held, it will calculate both the number of business kilometres and the total number of kilometres travelled by the car during the holding period. Using these calculations, the report provides the business use percentage for the holding period. 72. However, where the EzyCarLog Solution is not continuously used for the whole of the period of the year for which the car is held, the system will not record the number of business kilometres travelled during the holding period, nor the total number of kilometres travelled during the holding period. Therefore, in such a situation it will be necessary for the employer to separately determine the business use percentage using the estimated number of business kilometres and the odometer readings for the beginning and end of the holding period. | Conclusion on whether the EzyCarLog Solution satisfies the requirements of section 10A: 73. Where the EzyCarLog Solution is used continuously for the whole of the period of the year for which the car is held, the reports generated by the EzyCarLog Solution for that period will meet all the necessary requirements of section 10A. 74. Where the EzyCarLog Solution is not used continuously for the whole of the period of the year for which the car is held, the reports will not by itself satisfy the requirements of section 10A that are in respect of the holding period. To satisfy these requirements, an employer will need to: | Does the EzyCarLog Solution satisfy the requirements of section 10B?: 75. Section 10B states: 76. Where the EzyCarLog Solution is used continuously for the whole of the holding period, the reports will meet all the necessary requirements of section 10B in a non-log book year of tax as: 77. An employer in a non-log book year of tax who does not use the EzyCarLog Solution in that year of tax or does not use it for the whole of the period that the car is held but has used the system in one of the previous four FBT years continuously for an 'applicable log book period', will not by itself satisfy the requirements of section 10B. The employer will also need to:


What this Ruling is about | NOT LEGALLY BINDING SECTION: | A public ruling is an expression of the Commissioner's opinion about the way in which a relevant provision applies, or would apply, to entities generally or to a class of entities in relation to a particular scheme or a class of schemes. | If you rely on this ruling, the Commissioner must apply the law to you in the way set out in the ruling (unless the Commissioner is satisfied that the ruling is incorrect and disadvantages you, in which case the law may be applied to you in a way that is more favourable for you - provided the Commissioner is not prevented from doing so by a time limit imposed by the law). You will be protected from having to pay any underpaid tax, penalty or interest in respect of the matters covered by this ruling if it turns out that it does not correctly state how the relevant provision applies to you. | C is the operating cost of the car during the holding period; | R is the amount (if any) of the recipient's payment. | 10A NO REDUCTION OF OPERATING COST IN A LOG BOOK YEAR OF TAX UNLESS LOG BOOK RECORDS AND ODOMETER RECORDS ARE MAINTAINED | is made in the English language at, or as soon as reasonably practicable after, the end of the journey. | 162H APPLICABLE LOG BOOK PERIOD | are entered in the English language, at, or as soon as reasonably practicable after, the respective times to which those odometer readings relate. | 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 | Summary - what this ruling is about | Appendix 2 - Detailed contents list


Related rulings: TR 2006/10
Legislative references: FBTAA 1986 FBTAA 1986 10 FBTAA 1986 10A FBTAA 1986 10A(a) FBTAA 1986 10A(b) FBTAA 1986 10A(d) FBTAA 1986 10A(e) FBTAA 1986 10B FBTAA 1986 10(2) FBTAA 1986 136(1) FBTAA 1986 162C FBTAA 1986 162F FBTAA 1986 162G FBTAA 1986 162G(1)(b) FBTAA 1986 162H FBTAA 1986 162H(1) FBTAA 1986 162K(2)(b) FBTAA 1986 162L(2)(b) ITAA 1997 TAA 1953
Other references: The Macquarie Dictionary, online edition, accessed 10 August 2017