luxury car tax and tax evasion
Submitted: Thursday, Aug 07, 2003 at 16:53
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steve c
We are picking up a new Landcruiser at the end of the month and have been told by the dealer in
Brisbane that the luxury car tax threshold is $57,000 and any extras will be charged at 25% tax. He also tells us that the Govt are on to people driving out the door and going round to the nearest 4wd accessory
shop to get the add ons and will do you for tax evasion. He suggests waiting a month.
When I talk to the accessory
shop, they say this is not a problem to fit the next day, for instance. We are returning from working in the UK and we have to wait 6 weeks for our furniture to arrive, so we are off
camping and therefore want our extras asap. Does anybody know the facts on this?
Reply By: Andrew - Thursday, Aug 07, 2003 at 16:57
Thursday, Aug 07, 2003 at 16:57
A friend just got the dealer to fit his new Prado with gear but to issue him with two receipts, one for the car and another for the accessories with different dates on them. I am sure that this is a bit dodgy but I dont think that there is any problem with getting delivery and then adding gear afterwards - we certainly did it.
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Reply By: Peter H - Thursday, Aug 07, 2003 at 17:03
Thursday, Aug 07, 2003 at 17:03
Steve
I am a "tax professional" and I dont believe you have any problem if you get your accessories from somebody unrelated to the dealer.
No wiser getting tax advice from a car dealer than getting car advice from me.
enjoy your travels
Peter
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Reply By: John - Thursday, Aug 07, 2003 at 17:16
Thursday, Aug 07, 2003 at 17:16
Steve
The tax is applied to the purchase price at the dealer level.
I am going through exactly the same thing at the moment.
The extras are not part of the new car purchase if bought from other suppliers than the dealer at time of purchase.
Go for it.
John
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Reply By: boobook - Thursday, Aug 07, 2003 at 17:23
Thursday, Aug 07, 2003 at 17:23
Could just be that the dealer is going to make a case for you to buy the extras off him ( with 25% tax) instead of going to someone else.
Like Andrew I have a friend who bought a Pajero right on the Luxury tax limit. The dealer "sold the extras to him the next day" with seperate cheques and reciepts and hey presto, no luxury tax. The only stipulation was that he could not do it for Factory options - too obvious. If there were any complications at a later date that would be the dealer's problem wouldn't it?
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Reply By: Member - Wherethehellawi - Thursday, Aug 07, 2003 at 17:33
Thursday, Aug 07, 2003 at 17:33
If the 4wd
shop is contracted by you and the Dealer has at arms length nothing to do with the transaction then the car will not attract any additional luxury tax. If the works go thru the dealer books then they must call it luxury and then subject to additional tax.
The ato is not worried about items if they are genuinely fitted after the "purchase"
Wow! am I cute
Richard
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Reply By: Member - Chris - Thursday, Aug 07, 2003 at 19:48
Thursday, Aug 07, 2003 at 19:48
At the risk of flak and incoming, may I suggest that if anyone purchases their 4WD with the aim of TAX in mind, then you shouldn't be considering the purchase. A 4WD should be considered for USE.
Buy a troopy and know that you've got the best!!!!!!Chris
<- 1996 Troopy, the best!
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Reply By: steve c - Thursday, Aug 07, 2003 at 20:24
Thursday, Aug 07, 2003 at 20:24
Chris
I appreciate your point, but as we will be living up near the Cape, our Landcruiser will get plenty of use I rekkon.
I just don't see the point of paying 25% tax on the extras if I can legally avoid it. Thanks for the replies, the
forum is great.
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Reply By: Allyn (Pilbara) - Friday, Aug 08, 2003 at 02:06
Friday, Aug 08, 2003 at 02:06
sounds like he's trying to scam you for the add ons.
I can't see how you can possibly be done for tax evasion by buying accessories at another outlet after the sale. You will pay your 10% GST but with a bulh buy should be able to negotiate some sort of a discount anyway to offset that so I reckon you'll be much better off.Next Trek - Callawa Rd
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Follow Up By: Member - Wherethehellawi - Monday, Aug 11, 2003 at 19:05
Monday, Aug 11, 2003 at 19:05
your right allyn
They cant slug you for luxury car tax unless untill the retail cost of the vehicle goes over the thresshold. Just one dollar over then all it attracts the tax.
Luxury tax does not apply to add-ons after point of sale!!
But remember if " dealer" fitted prior to delivery and is being charged by dealer then there is an obligation to pay Luxury Tax if the bottom line is over the thresshold.Wow! am I cute
Richard
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Reply By: Martyn (WA) - Friday, Aug 08, 2003 at 09:26
Friday, Aug 08, 2003 at 09:26
Steve,
For what it's worth my mate has just been going through the same thing, the dealer told him to purchase the accessories separately, as to avoind the extra tax, the dealer also mentioned that now is a good time to do this because the tax rule makers are looking to close this little loop hole, in response to the previous reply, yes you will be able to negotiate with the dealer but I've also found that walking into a 4WD accessory place and letting them know you want to buy X amount of accessories is also a good place to bargain from, you could be looking a a good discount here as
well. Keep the shiny side up
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Reply By: Michael - Saturday, Aug 09, 2003 at 15:24
Saturday, Aug 09, 2003 at 15:24
Gday Steve, if you buy a more capable Patrol with more realistic price ,
the overhang into the 25% will be less. The chrome toyota badge in the middle of the grille cant be woth 10 grand, surely. Regards Michael
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Reply By: Michael - Saturday, Aug 09, 2003 at 15:24
Saturday, Aug 09, 2003 at 15:24
Gday Steve, if you buy a more capable Patrol with more realistic price ,
the overhang into the 25% will be less. The chrome toyota badge in the middle of the grille cant be woth 10 grand, surely. Regards Michael
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Follow Up By: steve c - Saturday, Aug 09, 2003 at 16:56
Saturday, Aug 09, 2003 at 16:56
Michael,
We're going to live in a quite remote town and when I was there a couple of months ago I don't recall seeing one Patrol that was owned by the locals, gotta be a reason for that.
Put it another way; if you had a medical problem that was worrying the hell out of you and there were 2 doctors in town and 90% of the locals said Doc A was terrific and Doc B did'nt have much of a reputation, which one would you trust with your 'problem'?
Cheers for the replies,
steve
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