The start of April is now upon us and it’s time to get moving with FBT, which for most businesses means reviewing your entertainment, travel and motor vehicle expenses for the last 12 months.
Red Flags & Data Matching
This year the ATO is putting more resources into FBT compliance, not just focusing on declaring the right amount, but also ensuring businesses are keeping the right records. A taskforce has been established to target benefits provided to contractors, clients and suppliers.
Through the use of data matching the ATO will be reviewing employers who have purchased cars but not disclose car fringe benefits and entities claiming an FBT exemption or rebate will be closely examined.
Living away from home allowance is also an ATO focus area, especially businesses that are failing to obtain the correct substantiation documents to claim accommodation, food & drink expenses.
When was the last time you considered if your business should be registered for FBT?
If you’re not registered for FBT or are a business that isn’t doing an FBT return every year, it is time to review your obligations. Rather than run the risk of getting caught in a time-consuming audit, it is worthwhile to review your accounts and assess any FBT risk now. If you are unsure where to start, contact us to organise a review and discuss ways your business can reduce audit risk.