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Fuel tax credits: Four-year amendment period questions remain

FTCs: Four-year amendment period questions

The ATO releases a decision impact statement on recent judgements related to a taxpayer’s fuel tax credit claim.


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The Australian Taxation Office (ATO) has released a decision impact statement following the judgments of the Administrative Appeals Tribunal (AAT) and the Full Federal Court in Linfox Australia Pty Ltd v Commissioner of Taxation of the Commonwealth of Australia (Linfox).

The decision impact statement provides the ATO’s view of the cases and what they mean for ATO advice and guidance.

Calculating fuel tax credits

The case concerned the operation of the Fuel Tax Act 2006 (FTA) that allows a taxpayer a fuel tax credit for taxable fuel that they acquire for use in carrying on their enterprise. Under the FTA that fuel tax credit is reduced by a road user charge (RUC) if the fuel is acquired to use for travelling on a public road.

The three substantive issues in Linfox were:

  • whether the fuel tax credit was required to be reduced by the RUC when travelling on privately operated toll roads (that is, are such roads public roads?)
  • whether credits relating to fuel acquired to power cabin air conditioning are required to be reduced by the RUC, and
  • if the fuel tax credit was required to be reduced by the RUC, whether the taxpayer was denied an entitlement to fuel tax credits outside of the four-year limitation period.

To continue reading further analysis of this case, please log on to KPMG Tax Now.

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