FBT issues on ATO’s radar

The ATO has updated its list of what attracts its attention to include six items specifically related to FBT. These include:

  • failing to report car fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits
  • mismatches between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer’s tax return
  • claiming entertainment expenses as a deduction but not correctly reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising
  • incorrectly calculating car parking fringe benefits due to significantly discounted market valuations, using non-commercial parking rates or not having adequate evidence to support the calculated rates
  • not applying FBT to the personal use of an organisation’s assets provided for the personal enjoyment of employees or associates
  • not lodging FBT returns, or lodging them late, to delay or avoid payment of tax.

From CAP TAX News – 02 May 2019 / Edition 16