Car Fringe Benefits Rules Changed
From our September 2011 issue
The government recently enacted legislation to effect its announced measure to flatten the statutory rate (to 20%) to determine the taxable value of car fringe benefits.
The legislation to effect this change is complex, and while transitional rules are available, their application is tricky, For example, in order to by-pass the transitional rules and apply the new rules directly, employers must ensure that no employee will be “worse off”.
If you provide car fringe benefits in relation to which you intend to continue using the statutory method to determine the fringe benefits tax payable, you should consult your tax adviser so that he/she can assist in building these new rules into your FBT calculation system.
This information is for guidance only and is not intended as specific advice to any reader. Professional advice should be obtained before acting on any information contained herein. The publisher accepts no responsibility for loss occasioned to any person or organisation as a result of action or the refrain of action as a consequence of the contents of this publication.