Document ID: chunk:federal_register_of_legislation:C2025C00120:section:11:p2
Version: federal_register_of_legislation:C2025C00120
Segment Type: section
Provision Reference: s 11 (pt 2/2)
Character Range: 64870–66068

in respect of a car in respect of the period (in this subsection called the holding period) during a year of tax while the car was held by the person is the amount calculated in accordance with the formula:

where:
INT is the amount of interest that is deemed to have been incurred by the person in respect of the car in respect of the year of tax;
DHP is the number of days in the holding period during which the car was owned by the person; and
DCO is the number of days in the period in the year of tax during which the car was owned by the person.
 (2) For the purposes of this Subdivision, the amount of interest that is deemed to have been incurred by a person in respect of a car in respect of a year of tax is the amount calculated in accordance with the formula:

where:
A is:
 (a) where the car was owned by the person at the beginning of the year of tax—the depreciated value of the car at that time; or
 (b) in any other case—the cost price of the car to the person;
B is the statutory interest rate in relation to the year of tax;
C is the number of days in the period in the year of tax during which the car was owned by the person; and
D is the number of days in the year of tax.