FBT: otherwise deductible rules and salary sacrifice expense payment fringe benefit - TD 2013/20
24 Oct 2013
On 23 October 2013, the ATO issued Taxation Determination TD 2013/20 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 s 35-10(2E) increased when applying the 'otherwise deductible rule' in s 24 of the Fringe Benefits Tax Assessment Act 1986?"
It was previously released in draft form as TD 2013/D4.
The answer to the question posed is "Yes. The amount included under the 'income requirement' in subsection 35-10(2E) of the Income Tax Assessment Act 1997 (ITAA 1997) when applying the 'otherwise deductible rule' in s 24 of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) is increased by the amount of the reimbursement."