Draft Taxation Determination

TD 93/D119

Fringe benefits tax: if an employer refrains from claiming an income tax deduction for deductible expenditure incurred in providing a fringe benefit to an employee, is the employer relieved from any fringe benefits tax liability which exists in the circumstances?

• Please note that the PDF version is the authorised version of this draft ruling.
  This document has been finalised by TD 94/42.

FOI status:

Preamble

1. No. Fringe benefits tax is imposed on the taxable value of fringe benefits provided to employees of the taxpayer (or their associates). The Fringe Benefits Tax Assessment Act 1986 defines the classes of fringe benefits which are subject to the tax and describes the calculation of the relevant taxable values.

2. Whether the employer obtains a tax deduction for expenditure incurred in providing a fringe benefit is irrelevant in determining the status of the benefit under the Act or in the calculation of its taxable value.

Commissioner of Taxation
20 May 1993

References

BO VNS 648/1

Subject References:
deductible expenditure
fringe benefits tax

Legislative References:
FBTAA 136(1)