FRINGE BENEFITS TAX ASSESSMENT ACT 1986

PART XIA - RECORD KEEPING EXEMPTION  

Division 3 - Consequences if conditions in Division 2 are satisfied  

SECTION 135K   EXCEPTION IF AGGREGATE FRINGE BENEFITS AMOUNT INCREASES TOO MUCH  

135K(1)  
Section 135G does not apply if the employer ' s aggregate fringe benefits amount for the current year is more than 20% greater than it was for the employer ' s most recent base year (unless the difference is $100 or less).

Example:

The aggregate fringe benefits amount was $100 for the most recent base year and $180 for the current year. This is 80% greater - well over the 20% limit. But section 135G can still apply because the difference is only $80.

135K(2)   Special rules for applying this test.  

In working out, for the purposes of subsection (1), the employer ' s aggregate fringe benefits amount for the current year, apply the following rules.

135K(3)   Section 123 disregarded.  

Disregard the effect of section 123 (which deals with failing to retain statutory evidentiary documents).

135K(4)  
(Repealed by No 62 of 2011)

135K(5)   Special rule for car fringe benefits - cost basis method used in earlier year.  

If:


(a) for the employer ' s first car benefit year (if any - see subsection (6)), the employer used the method in section 10 (cost basis) to determine the taxable value of one or more car fringe benefits relating to a particular car; and


(b) the employer uses the same method for that car, or for a car provided as a replacement of that car, for the current year; and


(c) the business use percentage (see subsection 136(1) ) for the current year is not lower than the business use percentage for the first car benefit year by more than 20 percentage points;

the employer may, in using that same method, use the business use percentage for the car from the first car benefit year, instead of from the current year.

135K(6)   Meaning of first car benefit year .  

In subsections (4) and (5), the employer ' s first car benefit year is the first FBT year (if any) in the period:


(a) beginning with the employer ' s most recent base year; and


(b) ending with the FBT year immediately before the current year;

during which one or more car fringe benefits were provided in relation to the employer.




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