ATO Interpretative Decision
ATO ID 2003/25
Fringe Benefits tax
Fringe Benefits Tax: Exempt Benefits - Small Business Car ParkingFOI status: may be released
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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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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 $10 million threshold prescribed in subparagraph 58GA(1)(d)(i) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) only apply to the sum of the ordinary and statutory income of the employer entity itself, and not to the sum of the ordinary and statutory income of the group of entities of which the employer is a member?
Decision
Yes. The $10 million threshold prescribed in subparagraph 58GA(1)(d)(i) only applies to the sum of the ordinary and statutory income of the employer entity itself.
Facts
The employer is a proprietary limited company (the employer company) and is wholly owned by another proprietary limited company.
Both companies form a group of companies.
The sum of ordinary income and statutory income of the employer company for the relevant year in subparagraph 58GA(1)(d)(i) is less than $10 million.
The sum of ordinary income and statutory income for the group of companies for the same year is $10 million or more.
Subsection 58GA(2) of the FBTAA (new employers) does not apply.
Reasons for Decision
Section 58GA of the FBTAA provides that certain car parking benefits will be exempt for small businesses. In order for the exemption to apply, the employer must, among other things, meet the turnover test at subparagraph 58GA(1)(d)(i):
(i) the sum of the employer's ordinary income and statutory income for the year of income ending most recently before the start of the fringe benefits tax (FBT) year is less than $10 million.
Subparagraph 58GA(1)(d)(i) only refers to the sum of the employer's ordinary income and statutory income for the year of income (income tax year) ended most recently before the start of the FBT year.
The sum of the group of companies ordinary income and statutory income is not relevant to subparagraph 58GA(1)(d)(i).
Where subparagraph 58GA(1)(d)(i) is satisfied, the other parts of section 58GA of the FBTAA must also be satisfied in order for the car parking benefit to be an exempt benefit.
Date of decision: 23 October 2002
Legislative References:
Fringe Benefits Tax Assessment Act 1986
section 58GA
paragraph 58GA(1)(d)
subparagraph 58GA(1)(d)(i)
ATO ID 2002/793
ATO ID 2004/296
ATO ID 2004/935
Keywords
Fringe benefits
Fringe benefits tax
FBT motor vehicle parking
Car parking fringe benefits
Small business
Exempt benefits
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 23 October 2002 | Original statement |
| 11 September 2015 | Updated statement |
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