In this year’s updated list of ‘What attracts our attention’, we have six items that specifically relate to fringe benefits tax (FBT).
What attracts our attention in relation to FBT includes:
- failing to report car fringe benefits, incorrectly applying exemptions for vehicles, or incorrectly claiming reductions for these benefits
- mismatches between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer’s tax return
- claiming entertainment expenses as a deduction but not correctly reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising
- incorrectly calculating car parking fringe benefits
- not applying FBT to the personal use of business assets provided for the personal enjoyment of employees or associates
- not lodging FBT returns (or lodging them late) to avoid or delay payment of tax.
To view the ATO article in full, click here.