FBT issues on the ATO's radar

The ATO has updated its list of 'What attracts our attention', with six items that specifically relate to fringe benefits tax('FBT'), as follows:

  • Failing to report motor vehicle fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits.
  • Incorrectly calculating car parking fringe benefits due to:

      –     significantly discounting market valuations;

      –     using non-commercial parking rates; or

      –     parking rates not being supported by adequate evidence.

  • 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.
  • Not reporting fringe benefits on business assets that are provided for the personal enjoyment of employees or associates.
  • Not lodging FBT returns (or lodging them late) to delay or avoid payment of tax.

EDITOR'S NOTE

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