FBT issues on the ATO radar

FBT issues on the ATO radar

The ATO has updated its list of ‘What attracts our attention’, with six items that specifically relate to fringe benefits tax (‘FBT’), as follows:

Failing to report car fringe benefits, incorrectly applying exemptions for vehicles or incorrectly claiming reductions for these benefits.

Incorrectly calculating car parking fringe benefits due to:

  • significantly discounting market valuations;
  • using non-commercial parking rates; or
  • parking rates not being supported by adequate evidence.

Variations between the amount reported as an employee contribution on an FBT return compared to the income amounts on an employer’s income tax return.

Incorrectly claiming entertainment expenses as a deduction instead of reporting them as a fringe benefit, or incorrectly classifying entertainment expenses as sponsorship or advertising.

Not reporting fringe benefits on business assets that are provided for the personal enjoyment of employees or associates.

Not lodging FBT returns (or lodging them late) to delay or avoid payment of tax.