The ATO has been reviewing car fringe benefits and using third-party data, has identified and contacted 5,000 employers who may have an unreported FBT liability.
Some outcomes of this review are:
- one employer declared four cars, resulting in a payment of over $35,000 in FBT per year. As the employer came forward voluntarily, there were no penalties; and
- other employers reviewing their situations are identifying other benefits that should have been reported (e.g., one employer reported over $40,000 in expense and meal entertainment benefits).
The ATO plans to contact another 10,000 employers by letter in 2013, and has reminded employers that:
- if they make a car available to their employees for private use, they'll probably have an FBT liability;
- if a car is garaged at home, it is taken to be available for private use and travel to and from work is generally considered private use.
This article was published in the Winter 2013 Horizon. For a pdf version of the newsletter please click here.