TEMPLATE OBJECTION NOTICE TO TAX OFFICE
WORK-RELATED CAR EXPENSES – CENTS PER KILOMETRE METHOD
[INSERT DATE]
Private & Confidential
Deputy Commissioner of Taxation
Australian Taxation Office
PO Box 1130
PENRITH NSW 2740
Dear Sir/Madam
Notice Of Objection To Assessment[or Amended Assessment]
Taxpayer:[INSERT]
Tax File Number:[INSERT]
Assessment [or Amended Assessment]Number:[INSERT]
Date of Amended Assessment:[INSERT]
Year of income ended:[INSERT]
I [INSERT NAME OF TAXPAYER] (‘the Taxpayer’), whose address for service is [INSERT ADDRESS OR PO BOX OF TAXPAYER OR TAX AGENT], object to the above assessment [or amended assessment] (‘the Assessment’) and claim that:
(a)The Assessment should be set aside;
(b)Alternatively, the taxable income under the Assessment should be reduced by increasing the amount of deductions claimed against my assessable income by [INSERT AMOUNT] for the year of income ended [INSERT YEAR], and the taxable income of, and tax payable by,me should be recalculated accordingly;
(c)The amount of additional tax imposed by way of penalty should be remitted or reduced to nil; and
(d)The shortfall interest charge, (if any), imposed in the Notice of Assessment, to the extent it can be objected against (or in any case, I request that it) be remitted or reduced to nil.
The grounds for objection upon which I rely are as follows:
Facts
[INSERT, DELETEOR AMEND RELEVANT FACTS AS APPROPRIATE]
1.For the year of income ended [INSERT YEAR] I was engaged in employment as a [INSERT OCCUPATION]and derived assessable income from such employment being income according to ordinary concepts for the purposes of S.6-5 of the Income Tax Assessment Act 1997 (‘the ITAA 1997’).
2.My employer was [INSERT NAME OF EMPLOYER AND ABN].
3.In the course of performing myduties of employment, [I was required]it was necessary for me to undertake work-related travel in a car owned[or leased] by me. To the extent that it has not already been provided to the Tax Office, the following documentation is enclosed to support this:
[INSERT, DELETE OR AMEND DOCUMENTATION AS APPROPRIATE]
(a)The purchase [or lease documents] for the car;
(b)The car registration certificate/papers;
(c)Records showing that the car is designed to carry a load of less than one tonne and fewer than 9 passengers;
(d)Employment agreement, which details my job description and requirement to use my car in the course of carrying out my employment duties; and/or
(e)Letter from my employer confirming the requirement to use my car in the course of carrying out my employment duties.
4.I was paid by my employer a car allowance to cover work-related car expenses I incurred for using the car for business kilometres travelled. To the extent that it has not already been provided to the Tax Office, the following documentation is enclosed evidencing the payment of a car allowance:
[INSERT, DELETE OR AMEND DOCUMENTATION AS APPROPRIATE]
(a)Pay slips showing the payment of the car allowance; and/or
(b)Documentation explaining the basis (i.e., the amount) of how the car allowance is paid to me by my employer.
5.For business kilometres travelled, I claimed a deduction of [INSERT AMOUNT] for work-related car expenses using the cents per kilometre method. I applied the relevant rate set out in Part 2 of Schedule 1 to the Income Tax Assessment Regulations 1997 (i.e., the rate based on the car’s engine capacity of [insert engine capacity (e.g., 1601cc – 2600cc)]) to each business kilometre the car travelled, subject to a maximum claim of 5,000 business kilometres for the year of income ended [INSERT YEAR].
To the extent that it has not already been provided to the Tax Office, the following documentation is enclosed to support the calculation of work-related car expenses using the cents per kilometre method:
(a)Records of how the business kilometres travelled by the car were calculated, including:
(i)Purpose of the travel undertaken;
(ii)Frequency of work-related travel including any relevant patterns of travel; and
(iii)A reasonable estimate of the number of kilometres travelled for work-related purposes.
6.I have included all my employment income, comprising salary and wages [and the car allowance], from [INSERT NAME OF EMPLOYER] in my assessable income for the year of income ended [INSERT YEAR].
Arguments of the Taxpayer
[INSERT, DELETE OR AMEND ARGUMENTS AS APPROPRIATE]
7.A total of [INSERT AMOUNT]of work-related car expenses calculated using the cents per kilometre method were claimed as a deduction under S.28-12 and S.28-25 of the ITAA 1997. This claim is supported by the enclosed documentation mentioned above or previously provided to the Tax Office.
8.Further, I own [or lease] the car, in respect of which the work-related car expenses have been claimed as a deduction for the year of income ended [INSERT YEAR] as required under S.28-12 of the ITAA 1997. This contention is supported by the enclosed documentation or as previously provided.
9.Further, the work-related car expenses were for business kilometres the car travelled as the travel was undertaken in the course of producing my assessable income for the year of income ended [INSERT YEAR]. That is, the receipt of salary and wages [and the car allowance] from [INSERT NAME OF EMPLOYER]. Refer to S.28-25(3) of the ITAA 1997. This contention is supported by the enclosed documentation or as previously provided.
10.Further, the deduction for work-related car expenses, calculated using the cents per kilometre method, is not in respect of more than 5,000 business kilometres in the year of income ended [INSERT YEAR] in accordance with the limitation set out in S.28-25(2) of the ITAA 1997. This contention is supported by the enclosed documentation or as previously provided.
11.Further, as the cents per kilometre method has been used to calculate my deduction for work-related car expenses, I amnot required to substantiate the car expenses for the car pursuant to S.28-35 of the ITAA 1997.
I have kept sufficient records so as to be able to demonstrate that the amount of business kilometres claimed was based on a reasonable estimate. This contention is supported by the enclosed documentation or as previously provided.
12.Further, in calculating the number of business kilometres travelled by the car, no private journeys were taken into account, such as:
●travel between my home and workplace (unless I was on call and commenced work before leaving home, carrying bulky equipment or was classified as an itinerant worker); and/or
●private travel not connected to work.
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I declare that the information contained in this objection, and in any attached documents, is true and correct.
Name:
Signed: