‘A simple mistake can attract our attention’: ATO reminder about FBT slips-ups
The tax office has issued a reminder to tax professionals about some simple, but common, errors which often attract its attention with fringe benefits tax (FBT).
As tax agents prepare to lodge for the 2018 FBT year, the tax office has highlighted that “a simple mistake or omission” can attract their attention, including common errors such as failing to report an employee’s private use of a company car.
Other common errors include claiming exempt food and accommodation in living-away-from-home allowance (LAFHA) benefits; undervaluing employee car park benefit; and incorrectly claiming employer exemptions and rebates.
The ATO has been vocal in its focus on employer-provided motor vehicles and private use associated with it, having noted the failure of some employers to identify or report these fringe benefits or incorrectly apply exemption provisions.
Draft guidance, PCG 2017/D14, provided by the ATO clarifying “minor, infrequent and irregular” private travel for work vehicles has been welcomed by practitioners as it helps provide certainty to a previously “grey-area” exemption.
LAFHA benefits have also routinely attracted the ATO’s attention, with common errors including claiming reductions for ineligible employees; failing to obtain required declarations from employees; claiming a reduction in the taxable value of the LAFHA benefit for exempt accommodation and food components in invalid circumstances; and failing to substantiate expenses relating to accommodation and, where required, food or drink.
The tax office will also continue to pay close attention to the validity of valuation provided in relation to car parking fringe benefits, noting errors that include market valuations that are significantly less than the fees charged for parking within a one-kilometre radius of the premises on which the car is parked.
Other common errors with car parking valuations include the use of rates paid where the parking facility is not readily identifiable as a commercial parking station; rates charged for monthly parking on properties purchased for future development that do not have any car park infrastructure; and insufficient evidence to support the rates used as the lowest fee charged for all-day parking by a commercial parking station.
By: Jotham Lian
10 APRIL 2018
www.accountantsdaily.com.au
Hot Issues
- FBT Reminder – Odometer Reading
- ATO’s debts on hold campaign prompts new IGTO guidance
- A comprehensive collection of small business benchmarks
- The 2025 Financial Year tax & super changes you need to know!
- Underperforming employees: When can you terminate?
- A comprehensive list of guides to industry specific tax deductions.
- ‘Renewed concerns’ about economy sees consumer sentiment dip: Westpac
- Oldest Buildings in the World.
- Small businesses may ‘collapse under strain of payday super’, IPA warns
- ATO’s hands tied with scrapping on-hold debts, expert says
- What Drives Your Business Growth and Profits?
- Australian Taxation Office (ATO) shifting to firmer debt collection activity
- Why employee v contractor comes down to fine print
- Sharing economy reporting regime for platform operators
- Countries producing the most solar power by gigawatt hours
- Illegal access nets $637 million
- Accessing superannuation benefits.
- Does your business have a company Power of Attorney?
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- GrantConnect
- 2 in 3 SMEs benefit from instant asset write-off, survey reveals
- Updated guidance on R&D claims
- Do you know how to recover debts?
- Wheat Production by Country
- Types of small business benchmarks
- What is a Commercial Lease?
- Vimeo test
Article archive
- January - March 2024
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
April - June 2018 archive
- Touch Payroll (STP)
- ‘Calm before the storm’: Government proposes 12-month SG amnesty
- Government intensifies cash payments crackdown - Kelly O'Dwyer
- Passive investment companies tax rate still 30%
- Cryptocurrency audits tipped to increase this EOFY
- Australia by numbers – Update
- $2.4m lost to tax scams, ACCC reports
- No GST on digital currency
- Federal Budget 2018 - Overview
- Your Budget
- 4 components of our 2018 Federal Budget
- Resources to help understand and implement Single Touch Payroll (STP)
- New rules capture SMSFs trading big with cryptocurrency
- New passive income test for lower corporate tax rate
- Tools to help you manage your financial position are available on our site.
- ‘A simple mistake can attract our attention’: ATO reminder about FBT slips-ups
- Australia by numbers – Update
- Beware residency rules if moving overseas
- Meaningful tax reform in high demand
- Working holidaymakers and tax returns
- Single Touch Payroll – 1 April 2018 Action
- Property investors on notice after ATO spots false claims
- ATO issues update on cryptocurrency compliance traps
- Australia's vital statistics
- Accountants spy elder abuse spike as mortgage stress sets in
- Tax office releases fresh guidance on SMSFs
- Labor's tax plans could favour the rich, analysis shows
- FBT Reminder – Odometer Reading
What our clients say about us