Freight and logistics company Linfox is launching an Australian legal test case to clarify the term ‘public road’.
The firm is raising the issue in light of the Fuel Tax Act 2006 to ensure fuel tax credits are recorded correctly.
The test case is challenging a narrow area of the legislation, which states: “To the extent you acquire… fuel to use, in a vehicle, for travelling on a public road, the amount of your fuel tax credit is reduced by the amount of the road user charge for the fuel.”
Linfox argue the term ‘public road’ is not defined in the law. This is critical to the application of the road user charge which is used to fund government repairs to public highways.
Trucks currently travelling on a toll road pay the road user charge for the journey even though toll road repairs are not government funded, the company says.
The Commissioner of Taxation takes the view that a toll road is a public road for the purposes of applying the road user charge
Linfox estimates that 10% of its journeys use a toll road.
“We have worked with the Commissioner of Taxation on this issue.
“In these discussions it was agreed that a court judgement would be the best way to clarify this issue,” a company statement says.
Linfox is arguing that the M2 toll road in New South Wales does not meet the description of a ‘public road’ to illustrate the case.
The firm has been “incorrectly reducing” the amount of fuel tax it has “been entitled to” through applying the road user charge as a result, the statement says.
“If successful, we will be entitled to seek a refund of any fuel tax credits that have been under-claimed.
“The decision would also mean that any other taxpayers using fuel on any roads that do not meet the term ‘public road’ would also be eligible for refunds.”
