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FBT: The six things currently on the ATO radar

May 9, 2019

9 May 2019

The ATO has indicated it will be looking closely at the following fringe benefits tax issues this year.

According to the ATO website, the following FBT issues will be closely monitored this year:

  • 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
    • not having adequate evidence to support the calculated rates 

  • not applying FBT to the personal use of business assets provided for the personal enjoyment of employees or associates

  • not lodging FBT returns (or lodging them late) to avoid or delay payment of tax.

Source:
https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/FBT-issues-on-our-radar/

Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how the above may apply to your individual circumstances.

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