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ATO Interpretative Decision

ATO ID 2002/609

Fringe Benefits Tax

Fringe Benefits Tax: In-house residual fringe benefits
FOI status: may be released

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  • This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

CAUTION: This is an edited and summarised record of a Tax Office decision. This record is not published as a form of advice. It is being made available for your inspection to meet FOI requirements, because it may be used by an officer in making another decision.

This ATOID provides you with the following level of protection:

If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.

Issue

Does the provision of free travel passes by a third party passenger train operator to employees of a freight train operator constitute an 'in-house residual fringe benefit' as defined under subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?

Decision

No. The provision of free travel passes by a third party passenger train operator to employees of a freight train operator do not constitute an 'in-house residual fringe benefit' as defined under subsection 136(1) of the FBTAA.

Facts

A passenger train transport operator provides free travel passes to employees of a freight train transport operator.

The passenger train transport operator is not related to the freight train transport operator.

Reasons for Decision

The provider of the fringe benefit does not carry on a business that is identical or similar to the type of business carried on by the employer. The business of freight train transport is not considered to be 'identical or similar' to the business of passenger train transport.

Therefore, the fringe benefit cannot be considered to be an 'in-house residual fringe benefit'.

Date of decision:  22 October 2001

Year of income:   Year ended 31 March 2001 Year Ended 31 March 2002

Legislative References:
Fringe Benefits Tax Assessment Act 1986
   Subsection 136(1)

Keywords
In house residual fringe benefits

Business Line:  Centres of Expertise Fringe Benefits Tax

Date of publication:  31 May 2002

ISSN: 1445-2782

history
  Date: Version:
You are here → 22 October 2001 Original statement
  12 May 2006 Archived

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