12 Oct 066 Treasury discussion paper on reporting exclusion for pooled or shared carsThe Government announced in its final response to the Report of the Taskforce on Reducing Regulatory Burdens on Business - Rethinking Regulation that it agreed in principle to a fringe benefits tax (FBT) reporting exclusion for pooled or shared cars with details to be finalised through consultation: see 2006 TAXVINE No 31 (6) (18 August 2006).
The Treasury has now published a Discussion Paper on the topic. The purpose of the paper is to set out the proposed treatment of pooled or shared cars within the FBT law as per the Government’s announcement. Treasury says that the principles outlined in the paper have not received Government approval and are obviously not yet law, and consequently should not be relied upon in any way.
When finalised, it is proposed that car fringe benefits arising from pooled or shared cars be excluded from the FBT reporting requirement, with effect from 1 April 2007. Car fringe benefits arising from pooled or shared cars provided on or after this date will not be required to be recorded on the payment summaries of affected employees.
The cut-off date for comments in relation to the Discussion Paper is Friday 20 October 2006.
For a copy of the Discussion Paper, go here