[4281] FBT payable on the private use of motor vehicles by directors of a corporate trustee of a discretionary trust [new]
Title
Decision impact statement
Decision impact statement on SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36
Purpose
This Decision impact statement explains the Full Federal Court's decision in this case, which concerned whether 3 brothers, who were the directors of a corporate trustee of a discretionary trust and also beneficiaries of this discretionary trust, were:
- each an ‘employee’ within the meaning of that term in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA), and
- (if the brothers were each found to be an employee) whether car benefits provided to them were provided ‘in respect of’ their employment.
The decision confirms that the common law meaning of ‘employee’ can be used to determine if a person is an employee within subsection 136(1) of the FBTAA. The capacity in which a person receives benefits from a trust will need to be determined having regard to all the facts and circumstances of a case. Other tax provisions may also apply to tax arrangements involving private use of motor vehicles by directors of a corporate trustee of a discretionary trust.
Comments
The Decision impact statement on SEPL Pty Ltd as trustee of the SFT Trust v Commissioner of Taxation [2026] FCAFC 36 published on 1 July 2026. Comments period closes on 26 July 2026.
Contact
Aruni Abeysinghe, Tax Counsel Network