FBT charter

Purpose

Terms of reference

The National Tax Liaison Group (NTLG) Fringe Benefit Tax Sub-committee referred to as the FBT Sub-committee deals with matters arising in relation to the administration, interpretation and application of the Fringe Benefits Tax Assessment Act 1986 and related tax Acts.

Fringe benefits tax (FBT) is a general term used in this document.

The FBT Sub-committee is the forum where the Australian Taxation Office (ATO) and members of the representative bodies can:

• work together in a transparent and open manner
• consult and collaborate on the legal and administrative aspects of FBT with a mutual objective to:
• identify significant issues
• resolve FBT issues, and
• implement administrative solutions that facilitate practical compliance with the tax law
• provide an opportunity for consultation, collaboration and co-design of new and revised FBT products
• bring to the attention of government matters where the tax laws are not operating in accordance with their policy intent or matters that produce unintended consequences or unexpected or significant compliance costs
• gain a mutual understanding of respective situations through a candid exchange of views and exchange strategic information on FBT
• gain an understanding about fringe benefits tax issues that affect businesses and identify emerging issues, and
• consider whether matters raised at the meetings may be suitable for inclusion on the Tax Issues Entry System (TIES).

Type of forum and length of term

The FBT Sub-committee falls under the auspice of the National Tax Liaison Group (NTLG). The FBT Sub-committee operates independently and is governed by the principles outlined in this charter.

Category:	The FBT Sub-committee is a tax interpretation and administration forum.
Length of term:	The FBT Sub-committee is an ongoing consultative forum.

The operation of the sub-committee will be reviewed annually or biennially at the discretion of the chair and with relevant approval.

Decision making authority

The FBT Sub-committee acts in an advisory capacity to the ATO and helps the ATO in the legal and administrative aspects of FBT. Tax officers involved in the consultation processes will follow corporate procedures, including escalation processes, for the resolution of significant issues. To that end, senior officers from the Tax Counsel Network and Small and Medium Enterprises business line provide leadership from an ATO perspective.

Members of the FBT Sub-committee are encouraged to participate constructively in full and honest discussions on the various issues and to make recommendations on particular products and administrative approaches. Approval of any ATO strategies will be in accordance with ATO procedures.

Governance and relationships

The FBT Sub-committee is sponsored by the Deputy Commissioner, Small and Medium Enterprises.

Tax Counsel FBT, Tax Counsel Network is chair of the forum and custodianship of the relationship between the ATO and members of the representative bodies represented on the forum.

The FBT Sub-committee reports to the National Tax Liaison Group.

Justification for establishment

The NTLG and its sub-groups provide an opportunity for the candid exchange of views between the ATO and the tax profession, allowing all parties to gain a mutual understanding of their respective situations.

The FBT Sub-committee was established by the Commissioner following the NTLG meeting of 3 December 1986 to address specific FBT issues following the introduction of FBT. In 1993, following a period during which the sub-committee did not meet, the sub-committee was reconvened due to the number of FBT issues that were causing concern to taxpayers, the professions and the ATO.