FBT minutes, May 2009

13. Lodgment (CTA)

A taxpayer with substituted accounting periods (SAPs) may have clashing tax compliance priorities that result in significant workloads. For example, taxpayers with a 31 December year end have their income tax payments due on 1 June. Although lodgment can be deferred until July, as the correct taxable income details need to be finalised before 1 June, these taxpayers effectively have to complete their income tax calculations by then.

This results in a clash with both the FBT and income tax calculations due within 10 days of each other, that is, their two main tax compliance processes are being completed at the same time, causing significant workloads. It would assist if there was some flexibility around the lodgment of FBT returns that enabled taxpayers with SAPs to even out their tax compliance related workflows. Any impact on revenue collections could be managed through the FBT instalment arrangements.

Can the lodgment dates of the FBT return have some flexibility in it for taxpayers with SAPs?

Tax Office response

The Tax Office advised that there is some discretionary flexibility for lodgment deferral of FBT returns, however, a blanket deferral is currently not available for large corporates.

Due to the volume of FBT returns lodged by tax agents and additional demands on tax agents, for example, additional workload associated with the current economic stimulus package, there is a general deferral for tax agents and they can self assess FBT deferrals.

Where specific circumstances of a large corporate warrant deferral, this will be considered. Requests should state the reasons for seeking a deferral.

Requests should be made via the following email address:

LargeDan@ato.gov.au - Attention Director, Large Business Unit

Note: these arrangements are for lodgment deferral only.

Sections within Agenda items

• 1. Opening of meeting including any changes to the agenda
• 2. Confirmation of minutes of the 26 February 2009 meeting
• 3. Items carried over from previous meetings
• 4. TRs/TDs, class rulings, LAPS and ATO IDs issued since the February meeting
• 5. News from the Tax Office
• 6. Excluded fringe benefits pooled/shared cars (CPA Aust)
• 7. Entertainment facility leasing expenses (TIA)
• 8. Employees live away from home part of each week (TIA)
• 9. Meals while travelling during daytime (TIA)
• 10. Work related items and protective clothing (TIA)
• 11. FBT and car parking (CTA)
• 12. Clarity - minor benefit exemption (CTA)
• 13. Lodgment (CTA)
• 14. Risk/compliance update (Tax Office)
• 15. Other business - late agenda items
• 16. Close of meeting