Expense payments - no-private-use declaration

Legislative reference: section 20AExternal Link of the FBTAA.

An expense payment benefit that is covered by a No-private-use declaration - expense payment benefits is an exempt benefit.

A condition of this exemption is that the expense payment benefit that arises from the reimbursement of expenditure is wholly employment related and that, as such, under the 'otherwise deductible' rule, would have a taxable value of nil.

In such instances, you will be able to make an annual declaration. The declaration must cover all expense payment benefits provided to employees where you are able to state that the benefits were provided only for employment-related purposes and that there was no private portion.

The declaration must be in a form approved by the Commissioner and be made by the declaration date (refer to Declarations).

    Last modified: 08 Jan 2014QC 17820