8Exempt car benefits

#### 8 Exempt car benefits (1) Except insofar as section 7 provides that the application or availability of a car held by a person is a benefit, the application or availability of a car held by a person is an exempt benefit. (2) A car benefit provided in a year of tax in respect of the employment of a current employee is an exempt benefit in relation to the year of tax if: (a) the car is: (i) a panel van or utility truck, designed to carry a load of less than 1 tonne; or (ia) used for taxi travel, designed to carry a load of less than 1 tonne, and not a limousine; or (ii) any other road vehicle designed to carry a load of less than 1 tonne (other than a vehicle designed for the principal purpose of carrying passengers); and (b) there was no private use of the car during the year of tax and at a time when the benefit was provided other than: (i) work‑related travel of the employee; and (ii) other private use by the employee or an associate of the employee, being other use that was minor, infrequent and irregular. (3) Where: (a) a car benefit relating to a particular car is provided by a particular person (in this subsection called the provider) in a year of tax in respect of the employment of a current employee of an employer; (b) at all times during the year of tax when the car was held by the provider, the car was unregistered; and (c) during the period in the year of tax when the car was held by the provider, the car was wholly or principally used directly in connection with business operations of: (i) the employer; or (ii) if the employer is a company—the employer or a company that is related to the employer; the car benefit is an exempt benefit in relation to the year of tax. (4) A car benefit is an exempt benefit in relation to a year of tax if: (a) the car benefit is provided in the year of tax in respect of the employment of a current employee; and (b) the person providing the benefit cannot deduct an amount under the Income Tax Assessment Act 1997 for providing the benefit because of section 86‑60 of that Act. Note: Section 86‑60 of the Income Tax Assessment Act 1997 (read together with section 86‑70 of that Act) limits the extent to which personal service entities can deduct car expenses. Deductions are not allowed for more than one car for private use.