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18 May 12 NTLG FBT Sub-committee

Last Thursday, 10 May 2012, Elizabeth Lucas FTIA (Grant Thornton), Greg Kent FTIA (PwC) and Tax Counsel Stephanie Caredes ATIA attended a meeting of the NTLG FBT Sub-committee. At this meeting, participants discussed a number of issues, including:

  • How the PAYG withholding process is likely to apply to and the associated administrative implications from proposed LAFHA reforms;
  • The recent case of Sent v FCT  [2012] FCA 382 concerning whether the payment was ordinary income or part related to a non-cash business benefit and could be  subject to FBT. 
  • Discussion around the changes to the statutory formula method for car fringe benefits and its application to some practical scenarios; 
  • Discussion around the FBT consequences of employers paying the Australian income tax liability of their expatriate employees; 
  • Discussion around meal entertainment and the inclusion of travel within its definition; 
  • The application of the section 58C exemption to relocation costs; 
  • Discussion around the potential FBT implications of a recipient's payment or recipient's contribution in the context of a salary sacrifice arrangement with respect to the decision in Munnery v FCT [2012] AATA 175; 
  • The ATO's FBT compliance activities, including the compliance campaign in respect of LAFHA, in-house and exempt benefits and exempt cars/other vehicles. Planned work for 2012-13 in relation to FBT compliance includes a focus on late lodgers of FBT returns, whether rebates are being correctly claimed by employers, why FBT returns have not been lodged for an entity where reportable fringe benefits amounts are shown in the entity's employees' payment summaries and a continued focus on car fringe benefits; and 
  • Products available on the ATO website to assist with FBT Tax Time 2012, including "Completing your 2012 fringe benefits tax return" (Click here to see link) and to prior years' information if required ( Click here see link).

Members who seek further detail in relation to any aspect of the above are encouraged to contact us at Tax Policy.