Fringe Benefits Tax – ATO “Radar” items – Year ending 31 March 2019

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The ATO has released their annual list of Fringe Benefits Tax (FBT) 'What attracts our attention' items for the FBT year ending 31 March 2019.

This year there are six items that are being targeted more specifically, including

  • 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 due to:

    • significantly discounted market valuations

    • using non-commercial parking rates

    • not having adequate evidence to supported the calculated rates

  • 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.

They are reminding all employers to be mindful of FBT matters, in particular the items that attract their attention, and to make sure they identify fringe benefits correctly. This will help employers stay off their radar!