Published on 24 September 2018
Licensed motor car traders (LMCTs) now have until Monday 31 December 2018 to voluntarily disclose any motor vehicles they have incorrectly obtained a duty exemption on over the last five years.
The voluntary disclosure period deadline was previously Sunday 30 September 2018.
By voluntarily disclosing any incorrectly obtained duty exemptions by Monday 31 December 2018, LCMTs will reduce the amount of penalty tax payable to 5 per cent plus interest on any outstanding duty, from up to 90 per cent that would be payable without a voluntary disclosure.
Under the Duties Act 2000, the exemption from duty is only on demonstrator vehicles used exclusively for the purpose of sale of another vehicle of the same class.
Some licensed motor car traders (LMCTs) have incorrectly obtained a duty exemption for motor vehicles registered and/or used as service demonstrator or service loan vehicles.
Motor vehicles, such as those used for a range of business or private purposes, including customer loans, service, workshop and deliveries, promotion and use by directors, employees and their family members are not exempt from duty.