Item 6.1 of the minutes of the 15 November 2001 meeting of the FBT Sub Committee of the NTLG records the concern expressed by all of the professional bodies about the ATO's interpretation of paragraphs 89 and 90 of TR 2001/10. Also relevant are paragraphs 23 and 27.
In essence, it seems that the ATO's view is that for there to be an effective salary sacrifice arrangement (SSA), when an employee is on paid leave, the mix of salary and benefits provided must reflect the mix of salary and benefits provided during the period in which the leave accrued, not the mix of salary and benefits agreed for the year or period in which the leave is actually taken.
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.