ATO focus on fringe benefits tax
2018 FBT reporting
When it comes to fringe benefits tax (FBT), a simple mistake or omission can attract the ATO's attention.
To help you with FBT reporting this year, we've highlighted some common errors to avoid. These include:
- failing to report an employee's private use of a company car
- claiming exempt food and accommodation in living-away-from-home allowance benefits
- undervaluing employee car park benefits
- incorrectly claiming employer exemptions and rebates
Keep in mind the ATO's focus areas, as these will help you be clearer on your obligations and entitlements when reporting FBT.What attracts the ATO's attention?
To help you get things right, you should consider the behaviours, characteristics and tax issues that attract the ATO's attention.
Broadly, the following behaviours and characteristics may attract their attention:
- tax or economic performance is not comparable to similar businesses
- low transparency of your tax affairs
- large, one-off or unusual transactions, including transfer or shifting of wealth
- a history of aggressive tax planning
- tax outcomes inconsistent with the intent of tax law
- choosing not to comply or regularly taking controversial interpretations of the law
- lifestyle not supported by after-tax income
- accessing business assets for tax-free private use
- poor governance and risk-management systems
Flor-Hanly works proactively with our commercial and agribusiness clients to make sure that you are not only meeting your tax