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MEMBER 6 writes:

"Big brother is watching

We recently put out an explanation to clients on how staff could donate pre-tax to one of the prescribed charities to help out those affected by the Victorian bushfires.

Within 2 days we had a call from the ATO warning us that such arrangements could make the employee liable to FBT! They held the view that s 148(2) of the FBTAA which was to do with certain arrangements would have application. I cannot believe that the Commissioner would attempt to take such a literal view of the law in such dire times. There is no mischief.

Protecting the revenue is one thing but this stance beggars belief."

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