ATO Interpretative Decision
ATO ID 2003/1 (Withdrawn)
FBT
Fringe Benefits Tax: In-house residual fringe benefit - investment related serviceFOI status: may be released
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This ATO ID is withdrawn because no interpretation of the relevant provision of the Fringe Benefits Tax Assessment Act 1986 is required. Despite its withdrawal, this ATO ID continues to be a precedential ATO view in respect of decisions for income years up to, and including the 2015 fringe benefit tax year.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Is the provision of an investment related service, an in-house residual fringe benefit as defined in subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
Yes. The provision of an investment related service is an in-house residual fringe benefit as defined in subsection 136(1) of the FBTAA.
Facts
The employer operates in the financial services industry and provides a range of investment related services to its customers, including insurance administration and brokerage services.
As a consequence of the employment of the employee, the employer provides the employee with a particular investment related service, a service that the employer normally provides to its customers as part of its business.
Reasons for Decision
The benefit provided by the employer is provided in respect of the employment of the employee and is a 'fringe benefit' as defined in subsection 136(1) of the FBTAA.
The benefit does not fall within any of the categories of benefits covered by Subdivision A of Divisions 2 to 11 (inclusive) of Part III of the FBTAA, for example, car benefits and loan benefits. Because of this the benefit is a 'residual benefit' as defined in subsection 136(1) of the FBTAA. Note: the 'residual benefit' category normally applies to 'services' type benefits.
'Residual fringe benefit' as defined in subsection 136(1) of the FBTAA, means a 'fringe benefit' that is a 'residual benefit'. The investment related service is a 'residual fringe benefit'.
The term 'in-house residual fringe benefit' is defined in subsection 136(1) of the FBTAA. Subsection 136(1) of the FBTAA requires that the benefit is a 'residual fringe benefit'; that the provider of the benefit is the employer (or associate of the employer); that at the time the benefit was provided the provider carried on a business that includes the provision of identical or similar benefits principally to outsiders; but does not include a benefit provided under a contract of investment insurance.
The provision of the investment related service by the employer to the employee is a residual fringe benefit; the employer was providing the same service to its customers at the time the benefit was provided; the benefit is not a benefit provided under a contract of investment insurance. The benefit is therefore an in-house residual fringe benefit.
Date of decision: 30 March 1998Year of income: Year ended 31 March 1998
Legislative References:
Fringe Benefits Tax Assessment Act 1986
subsection 136(1)
Keywords
Fringe benefits tax
Fringe benefits
In-house residual fringe benefits
Residual fringe benefits
ISSN: 1445-2782
| Date: | Version: | |
| 30 March 1998 | Original statement | |
| You are here | 16 January 2015 | Archived |