A few websites have been promoting the idea of a small business company providing an EV car for private use by directors or employees. I appreciate that the use would be FBT exempt.
Lets say the company holds passive investment company or a bucket company which collects funds distributed from trusts. And assume the director is treated as employee and the vehicle is used for private use.
Is the business entitled to claim back the GST on the vehicle on the vehicle?
Normally, it is necessary to apportion private/business use of company goods.
Is the business entitled to claim depreciation on the purchase price of the car?
Normally the business would claim the FBT as an expense but this is exempt for an EV.
The ATO site states that the private portion of the expenses that are subject to FBT are tax deductible to the business. The private portion is subject to FBT although it is nil.
Thanks
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