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Section 39C provides for the taxable value of a car parking fringe benefit to be equal to the lowest fee charged by a commercial parking station operator in the ordinary course of business for all-day parking which is available to members of the public.

However, where the operator of a commercial parking station sets aside a proportionately small number of car parking spaces and, for those spaces only, charges a rate which is significantly lower than the remaining car parking spaces, it is considered that paragraph 39E(2)(b) would apply to deem the rate to be that rate charged on the majority of the car spaces.

Paragraph 39E(2)(b) would not apply if the employer could show that there was a predominantly commercial reason, other than to reduce car parking taxable values, for the lower fees charged.