Class Ruling
CR 2016/58A1 - Addendum
Fringe benefits tax: corporate clients of Smartgroup Corporation Ltd and its subsidiaries (Smartgroup) who participate in Smartgroup's bus travel benefit scheme
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Addendum
This Addendum is a public ruling for the purposes of the Taxation Administration Act 1953. It amends Class Ruling CR 2016/58 to change the preferential order of non compliance consequences.
CR 2016/58 is amended as follows:
Omit the paragraph; substitute:
14. Upon cessation of employment, the card account is cancelled. Any unused credits are paid out to the employee as gross salary, with PAYG withholding to be deducted.
Omit the paragraph; substitute:
15. On the employer's behalf, Smartgroup implements a range of reasonable safeguards to ensure that each smartcard is used only by the employee, for travel between home and work. Smartgroup will receive a report on a daily basis from the provider showing any employee who has used the smartcard. It will include a report on employees who used the smartcard on a mode of transport other than a bus, and the employer will be notified of such breaches. In regards to any non-compliance, the cost of that non-compliant travel (including FBT) will be charged and recovered from the employee from pre-tax salary where possible and as the preferred option. However, the alternative is that the costs (including FBT) are recovered in after-tax salary. If an employee uses the card for three non-compliant trips, the card account will be cancelled.
This Addendum applies on and from 31 May 2016.
Commissioner of Taxation
30 November 2016
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References
ATO references:
NO 1-A2FO82Q