Explanatory Memorandum
(Circulated by the authority of the Treasurerthe Hon John Dawkins, M.P.)This Memorandum takes account of amendments made by the House of Representatives to the Bill as introduced.Chapter 2 FRINGE BENEFITS TAX - TAX AGENT'S CERTIFICATION
Overview
2.1 This Bill will repeal subsection 71(3) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA).
Summary of amendments
2.2 This Bill will repeal subsection 71(3) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) which requires that an employer who furnishes a fringe benefits tax return without a tax agent's certificate is to provide certain information in a prescribed form [Clause 11] .
2.3 Subsection 71(3) will be repealed as it has been decided that it is no longer necessary to provide this information with the return.
2.4 Date of effect: The amendment applies on or after the date the Bill receives Royal Assent.
Background to the legislation
2.5 Subsection 71(3) of the FBTAA requires an employer who furnishes a fringe benefits tax return without a tax agent's certificate to provide, on the form which was prescribed at subregulation 5(2) of the Fringe Benefits Tax Regulations, details of sources of information used in compiling the return
2.6 It was decided to dispense with the requirement to provide this information with the return. Regulation 5 and the relevant part of the form in Schedule 1 of the Regulations were amended accordingly.
Explanation of the amendments
2.7 This Bill completes the process of removing the requirement to provide details of sources of information used in compiling a return by repealing subsection 71(3) [Clause 12] .