3. Fringe benefits tax lodgment date proposal
The proposal to extend the lodgment due date of the annual fringe benefits tax return has been discussed at the previous three meetings.
At the meeting in December it was agreed that the ATO would undertake an analysis of the number of amendments lodged by practitioners. It was suggested that a number of agents are lodging returns to meet the 25 June deadline and then subsequently lodging amended returns.
Colin Walker advised the group that the proposal to further extend the lodgment due date from 25 June to 7 July is not supported. The rationale behind the decision included:
- Analysis of lodgment patterns over 2011–14 returns shows that the majority of returns (68%) are lodged by the current due date of 25 June, 6% by 7 July, 11% post 7 July and 15% remain unlodged.
- The Revenue Analysis Branch (RAB) review of lodgment and payment patterns for the FBT income years 2011–14 identified that a majority of taxpayers who utilise the lodgment deferral (25 June) also defer payment and therefore there will be an impact to revenue.
- There are only a small number of returns amended, less than 1% of total lodgments. For 2014 returns, 663 amendments were lodged by tax agents.
- Discussions with other top tier firms on whether a further extension of time will improve lodgment compliance levels, did not reveal any support for the proposal.
- The proposal is not supported by ATO vested stakeholders, such as the fringe benefits tax area, Client Account Services and RAB, as the change will have an impact on revenue, current processing or doesn’t align with future ATO initiatives.