As the Christmas / Year-End party season nears, a reminder about Fringe Benefit Tax (FBT) liability, noting the heightened risks this time of year traditionally brings. “After the year that’s been, some bosses may wish to treat their employees to a bigger than usual Christmas party or gift as a way of saying thank you.
The ATO has released a ruling explaining: When an employee can deduct accommodation and food and drink expenses when travelling on work; The FBT implications, including the application of the ‘otherwise deductible rule’, where an employee is reimbursed for accommodation and food and drink expenses, or where the employer provides or pays for these expenses;
Where businesses provide car parking fringe benefits to their employees, the taxable value of these benefits must be calculated correctly to ensure they are meeting their fringe benefits tax (‘FBT’) obligations, regardless of the method used. The ATO has advised they may directly contact businesses who have engaged an arm’s length valuer, as required under the ‘market value method’. According to
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