Section Sch5-8 — Income Tax Act 2007

8 To determine the value of a benefit under clause 1— (a) any GST paid on the acquisition of a vehicle by the owner or lessor of the vehicle is— (i) included in the cost price of the motor vehicle or in the calculation of the motor vehicle’s tax value: (ii) not reduced by an amount of input tax on the supply of the vehicle to the owner or lessor: (b) if, in the period of 2 years before the vehicle’s acquisition by the person providing it to the employee, the vehicle is owned by the person or by someone associated with them, the cost price is treated as being the highest one of the cost prices paid for the vehicle by the person or an associate since its manufacture: (c) subject to paragraph (b), the cost price of the vehicle is treated as being equal to the vehicle’s market value if,— (i) the cost to the person who acquires the vehicle is zero; or (ii) the cost price is unable to be established to the satisfaction of the Commissioner by the person who acquires the vehicle; or (iii) at the time the vehicle is acquired, the cost price to the person who acquires the vehicle is less than the market value because of an arrangement between that person and an associated person, and that arrangement has the purpose of defeating the intent and application of the FBT rules.