Document ID: chunk:federal_register_of_legislation:C2025C00120:section:52:p3
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 52 (pt 3/4)
Character Range: 193844–196530

tax;
 (ii) if subparagraph (i) does not apply—the business use percentage of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; or
 (h) where:
 (i) paragraph (e) applies; and
 (iia) paragraph (k) does not apply;
  whichever of the following amounts is the least:
 (iii) the notional deduction;
 (iv) if it would be concluded that the amount of the recipients contribution would have been the same even if the residual fringe benefit were not applied or used in producing assessable income of the recipient—33⅓% of the amount that, but for this subsection and Division 14, would be the taxable value of the residual fringe benefit in relation to the year of tax;
 (v) if subparagraph (iv) does not apply—33⅓% of the amount that, but for this subsection and Division 14 and the recipients contribution, would be the taxable value of the residual fringe benefit in relation to the year of tax; or
 (k) if, under subsection 138(3), the residual fringe benefit is deemed to have been provided to the recipient only—the amount calculated in accordance with subsection (5).
 (2) For the purposes of the application of this section in relation to a fringe benefit, where the recipient:
 (a) while undertaking travel referred to in paragraph (1)(d), engages in an activity in the course of producing assessable income of the recipient; and
 (b) does not make, as mentioned in the definition of travel diary in subsection 136(1), an entry relating to the activity, being an entry of the kind referred to in that definition;
the activity shall be deemed not to have been engaged in by the recipient in the course of producing assessable income.
 (5) For the purposes of paragraph (1)(k) (which applies to a residual fringe benefit that, under subsection 138(3), is deemed to have been provided to an employee only), the amount is calculated in accordance with the formula:

where:
employee's percentage of interest:
 (a) is the percentage of the interest held by the employee, during a period (in this subsection called the holding period) in the year of tax, in the asset or other thing:
 (i) to which the residual fringe benefit relates; and
 (ii) that is applied or used for the purpose of producing assessable income of the employee; and
 (b) does not include the percentage of the interest held in that asset or other thing by the employee's associate or associates during the holding period.
unadjusted ND is the amount that would be ascertained as representing the component ND in the formula in subsection (1) if paragraph (1)(k) did not apply in relation to