It does not appear that there are specific provisions regarding the abuse of Fringe Benefits Tax Legislation, and it is governed by the usual penalty regime.
Further, it does not appear that there are any threshold amounts regarding the varying valuations of different cars.
Top 10 Key points regarding Car Fringe Benefits:
- Generally, the definition of a car will only extend to those designed to carry a load of less than one tonne and fewer than nine occupants.
- You may be taxed for days you have made the car available for private use, irrespective of any actual use.
- The fringe benefit calculation starts when you commit to providing the fringe benefit rather than the actual provision of the benefit.
- You may choose to calculate car fringe benefit tax in two ways: the statutory formula method and the operating costs method. The operating costs methods requires more record keeping but may be result in a more favourable tax statement.
- Ensure you are keeping track of when your logbook year is. If you do not maintain your records during a logbook year, you will not receive any reductions in your tax statement for business use of the car.
- Ensure your employees keep track of any expenses they pay to maintain the car such as fuel or non-crash repairs. This will help you to minimise your fringe benefit tax liability.
- Ensure you are as accurate as possible with your tax statement; false or misleading statements may incur costly penalties.
- Penalties will increase where the entity is a significant global entity or where the entity is uncooperative with the ATO.
- If using a registered tax agent, make sure you provide them with as much information as possible to ensure you are protected by the safe harbour provisions if they do not take reasonable care with your tax statement.
- The ATO retains an unfettered discretion to remit any penalties you may incur.