Options for employee benefit arrangement participants
The table below is provided to help you decide whether you wish to apply for the remissions announced by the Commissioner on 18 November 2004 or finalise your dispute with the Tax Office.
This document should be read in conjunction with the:
The individual circumstances described below are those of actual participants. If you consider that your individual circumstances were not taken into consideration when the terms of the settlement were negotiated or you are not sure what settlement terms are available to you please ring us on 1800 177 006 to discuss. The specific circumstances provided here should not be seen as limiting the issues you may wish to address.
Please note if we have issued both an income tax and fringe benefits tax assessment with respect to your Employee Benefit Arrangement we generally only seek to collect on one of these (usually income tax).
Penalty – 5%.
Interest - a rate of 4.72% for the pre and post amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Primary Tax – one taxing point, either income tax or fringe benefits tax. If we have issued both an income tax and fringe benefits tax assessment we will amend to nil the liability for one of these assessments with respect to your Employee Benefit Arrangement .
Penalty – 5%.
Interest – a rate of 4.72% for the pre and post amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 4.72% provided payment is made through a direct debit facility.
You relied on advice from the Tax Office which was held by your advisor in relation to the same type of arrangement, and
**you voluntarily provided information to the Tax Office without the issue of a formal notice, but outside the safe harbour period.
Please note if we have issued both an income tax and fringe benefits tax assessment with respect to your Employee Benefit Arrangement we generally only seek to collect on one of these (usually income tax).
Penalty – 10%.
Interest – a rate of 4.72% for the pre amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Primary Tax – one taxing point, either income tax or fringe benefits tax. If we have issued both an income tax and fringe benefits tax assessment we will amend to nil the liability for one of these assessments with respect to your Employee Benefit Arrangement.
Penalty –5%.
Interest – a rate of 4.72% for the pre and post amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 4.72% provided payment is made through a direct debit facility.
You relied on advice from the Tax Office which was held by your advisor in relation to the same type of arrangement, and
**you provided information to the Tax Office following the issue of a formal notice, but outside the safe harbour period.
Please note: if we have issued both an income tax and fringe benefits tax assessment with respect to your Employee Benefit Arrangement we generally only seek to collect on one of these (usually income tax).
Penalty - No reduction in the penalty granted in these circumstances.
Interest – a rate of 4.72% for the pre amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Primary Tax – one taxing point, either income tax or fringe benefits tax. If we have issued both an income tax and fringe benefits tax assessment we will amend to nil the liability for one of these assessments with respect to your Employee Benefit Arrangement.
Penalty –10%
Interest – a rate of 4.72% for the pre and post amendment period.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 4.72% provided payment is made through a direct debit facility.
Your advisor did not have any advice from the Tax Office and none was sought, and
**you advised the Tax Office of your involvement in the employee benefit arrangement during the safe harbour period.
Please note: if we have issued both an income tax and fringe benefits tax assessment with respect to your Employee Benefit Arrangement we generally only seek to collect on one of these (usually income tax).
Penalty - No reduction in the penalty granted in these circumstances.
Interest - No remission of interest granted in these circumstances.
*Payment arrangement if there is a debt outstanding – the tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Primary tax – one taxing point, either income tax or fringe benefits tax. If we have issued both an income tax and fringe benefits tax assessment we will amend to nil the liability for one of these assessments with respect to your Employee Benefit Arrangement.
Penalty – 5%.
Interest – full general interest charge to settlement date.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Your advisor did not have any advice from the Tax Office and none was sought, and
you did not provide information when it was asked for by the Tax Office.
Please note: if we have issued both an income tax and fringe benefits tax assessment with respect to your Employee Benefit Arrangement we generally only seek to collect on one of these (usually income tax).
Penalty – No reduction in the penalty granted in these circumstances.
Interest – No remission of interest granted in these circumstances.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Primary tax – one taxing point, either income tax or fringe benefits tax. If we have issued both an income tax and fringe benefits tax assessment we will amend to nil the liability for one of these assessments with respect to your Employee Benefit Arrangement.
Penalty – 10%.
Interest – full general interest charge to settlement date.
*Payment arrangement if there is a debt outstanding – The tax owing may be paid under an agreed repayment arrangement at a reduced interest rate of 6.28% provided payment is made through a direct debit facility.
Safe harbour period was during the period of 19 May 1999 to 13 September 1999.
***
If you participated in an employee benefit trust arrangement and you have received both an income tax and fringe benefits tax assessment we will amend to nil the fringe benefits tax assessment outside of settlement if the circumstances of your arrangement are similar to arrangements considered by the courts in either Essenbourne, Spotlight/Pridecraft P/L or Kajewski.
Depending on your individual circumstances there may be advantages in either entering into a settlement or applying for a remission. You may wish to seek independent advice before you make a decision.
If you settle:
your matter will be finalised,
you will receive a remission of penalties and interest, in accordance with your particular circumstances (see possible scenarios outlined above),
you will received a reduced rate of interest for any outstanding debt during the period of an agreed payment arrangement (a payment arrangement will be dependant on your individual circumstances including your capacity to pay),
as a general rule, where you enter into a rigorous payment arrangement based on your genuine capacity to repay, taking into account all factors, any interest outstanding at the end of three years would be fully remitted. Proposals that simply try to minimise payment of interest will not be accepted, and
you will avoid further litigation costs. In all the cases heard to date the courts have found that the deductions claimed are not allowable.
If you do not settle:
you can apply for remission of interest and/or further remission of penalties,
any objection you have lodged will be determined, and
we will take steps to collect any outstanding debt (see payment options for details).
What to read/do next
If you wish to settle you can:
ring on 1800 177 006 to discuss or you can forward a written settlement proposal detailing your individual circumstances to:
EBA Settlements, PO Box 3543, Albury NSW 2640.
If you wish to reduce your liability without settling you can:
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This document should be read in conjunction with the: