FBT Flashcards

Question

Statutory interest rate 2019

Answer 1

S19 FBTAA Taxable amount reduced by the otherwise deductible amount Doesn’t apply if benefit is paid for spouse Substantiation required (travel diary, expense payment declaration)

Answer 2

Taxable value Exception - cents per km reimbursement - where no private use declaration is signed (Allowances excludes TR92/15)

Answer 3

Property or residual expense | Expenditure paid for that is purchase of goods or services the employee provides to customers

Answer 4

No deduction under income tax, expenses inherently private TR2017/D6 Reduction in taxable value for exempt accomodation and food components - reasonable compensation for cost of accomodation - component of allowance that is reasonable compensation for increased expenditure on food (because of the live away from home) - reasonable amounts TD ?? Special rules for oil and gas rig workers Reduction in taxable value for fly in fly out scenarios

Answer 5

S39A Employee parks in parking facility on business premises for more than 4 hours (7am-7pm) Commercial parking within 1km that charges more Car parked in vicinity of work Car used to travel from home to work? Car parking threshold 2019 $ (FCT v Qantas)

Answer 6

Employees of religious, charitable, public education institutions and not for profit scientific institutions Employees of SBEs where employees car is not parked at a commercial parking station and not a public company Disabled permits

Answer 7

Statutory Taxable value = daily rate amount * days / year days * 228 12 week log book Taxable value = total value of car parking * 52/12 * days/year days

Answer 8

S40 FTBAA 1986 Includes entertainment and any other kind of property Exempt benefit - food and drink consumed by employee on working days at employers premises $1000 concession for in house benefits (per employee) In house 75% or arms length purchase price paid by employer (see further details - depends on property)

Answer 9

Any other benefit not covered by divisions 2 to 11 Eg. tax return free 50% free fees etc... Number of exemptions s47 FBTAA - employee transport where that is their business - childcare on premises - use of property (not mv) on business premises (kitchen, bathroom) - mv not intended for private use $1000 concession for in house benefits

Answer 10

Employer must elect to chose meal entertainment option rather than expense or property Once elected all entertainment must be provision of meal entertainment Entertainment - staff social functions - amusements - sport and similar leisure - business lunches and drinks (doesn’t include gifts of wine etc TD 94/55 timeliness and direct connection) Who? What? When? Why? Where? Morning tea and afternoon tea in the office etc are generally excluded. But if alcohol is provided it becomes entertainment. Where meal entertainment elected.. property benefit exemption of food and drink at work doesn’t apply Minor and infrequent exemption applies when using 12 week register method - doesn’t apply when using 50:50 method Calculation - 50:50 method taxable value is 50% of expense - 12 week register method taxable value is the % of employers total meal entertainment expenditure

Answer 11

Direct links Meal entertainment link - where using 50:50 or 12 week register same must be used for income tax deduction Portion subject to fbt is deductible for income tax purposes Portion not subject to fbt is not deductible for income tax So where it is considered an exempt benefit the employer can not claim a deduction in their tax return

Answer 12

Employer is entitled to an input tax credit for gst paid 2.0802

Answer 13

Employer is NOT entitled to an input tax credit for gst paid 1.8868

Answer 14

FBT is a tax deductible expense Fringe benefit is non assessable non exempt income for employee Exempt benefits are not fringe benefits - exempt benefit for fbt is included in assessable income

Answer 15

GST credits available for most expense payment fb (division 111 GST act) No GST input taxes credits arises where reimbursing a non deductible expense (client portion of meal) Taxable value of benefit for fbt is GST inclusive (TR 2001/2) Any amount assessable to employer doesn’t include GST GST component of cost of fb is not deductible if employer is eligible for input tax credit Employer can deduct fbt as a labour cost GST paid by employer is not deductible