19 Sep 07 Problems with car fringe benefit recordsThe ATO has warned that some employers are using inaccurate methods in dealing with the fringe benefits tax (FBT) obligations resulting from providing car benefits to their employees. Three of the areas that employers are getting wrong are:
- logbooks do not provide enough information about the car's use
- where a car is garaged at an employee's residence and the employer is claiming substantial business use for the car using the operating cost method, but there is no record in the logbooks of business travel being made
- employee contributions are incorrectly treated for income tax and GST purposes.
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