The ATO have released a summary of FBT issues that will ‘attract their attention’ this FBT year.
The FBT year runs from 1 April to 31 March with the 2019 FBT returns being due for completion and lodgement by the 21st May 2019.
The areas the ATO are warning taxpayers to get right this year to avoid costly mistakes have been listed on their website, an extract of which is included below:
- 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.
If you would like assistance with understanding your FBT obligations and staying off the ATO radar, please contact us on 03 52216399 or email us at firstname.lastname@example.org.
Disclaimer: this information is of a general nature and should not be viewed as representing financial advice. Users of this information are encouraged to seek further advice if they are unclear as to the meaning of anything contained in this article. Davidsons accepts no responsibility for any loss suffered as a result of any party using or relying on this article