30 May 13 FBT and Div 35: reimbursement of expenditure incurred under a salary sacrifice arrangement - TD 2013/D4
On 29 May 2013, the ATO released for public comment by 26 June 2013 draft Taxation Determination TD 2013/D4 entitled "Fringe benefits tax: when an employer reimburses an amount of expenditure incurred by an employee to a third party, under a salary sacrifice (or similar) arrangement with that employee, where that expenditure is notionally subject to Division 35 of ITAA 1997, is the amount included under paragraph (a) of the 'income requirement' in s 35-10(2E) increased when applying the 'otherwise deductible rule' in section 24 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?"
The answer given to the question asked is as follows:
"Yes. The amount included under paragraph (a) of the 'income requirement' in subsection 35-10(2E) of the ITAA 1997 when applying the 'otherwise deductible rule' in section 24 of the FBTAA is increased by the amount of the reimbursement."