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Star & Associates
Level 7, 16 O'Connell Street
Sydney NSW 2000

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