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Edited version of your written advice
Authorisation Number: 1013020998000
Date of advice: 30 June 2016
Advice
Subject: Agreement in respect of subsection 135X(3) of the Fringe Benefits Tax Assessment Act 1986
This advice applies for the following period
This agreement applies for the year ended 31 March 2016 and subsequent years in which the previous employers would have been able to use the relevant records.
Relevant legislative provisions
Fringe Benefits Tax Assessment Act 1986 Section 135S
Fringe Benefits Tax Assessment Act 1986 Section 135U
Fringe Benefits Tax Assessment Act 1986 Section 135X
Relevant facts and circumstances
A State or Territory body seeks written agreement with the Commissioner that following a transfer of employees from one State or Territory body to another State or Territory body, the new employers can:
1. treat a year which would have been a log book year of tax for the previous employer as a log book year for the purpose of using section 10 of the FBTAA to calculate the taxable value of a car fringe benefit
2. treat a year of tax that would have been a base year of tax for the previous employer as a base year for the purpose of calculating the taxable value of a housing fringe benefit under section 26 of the FBTAA
3. treat a register that would have been a valid register for the previous employer as a valid register for the purpose of using the 12 week record keeping method in Subdivision D of Division 10A of the FBTAA to calculate the taxable value of car parking fringe benefits
4. treat a benefit relating to the relocation of an employee that would have been an exempt benefit under sections 58B, 58C or 58D of the FBTAA as an exempt benefit
5. treat a benefit relating to trainees engaged under the Australian traineeship system that would have been an exempt benefit for the previous employer under section 58S of the FBTAA as an exempt benefit
6. use the end date that would have been used by the previous employer for the purpose of calculating the amortisation of the taxable value of fringe benefits relating to a remote area home ownership scheme under section 65CA of the FBTAA, and
7. use a recurring fringe benefit declaration which would have applied if the employer had not changed.
Reasons for decision
The Commissioner agrees to enter into an agreement with the State or Territory bodies to enable the State or Territory bodies to treat:
• a year of tax currently being treated as a log book year by the previous employers as a log book year for the purposes of calculating the taxable value of a car fringe benefit using the cost basis
• a year of tax currently treated as a base year of tax by the previous employers as a base year for the purpose of calculating the taxable value of a housing fringe benefit
• a register kept by the previous employers in relation to the value of car parking fringe benefits as a valid register
• a benefit currently being treated by the previous employers as an exempt benefit as a result of the relocation of an employee as an exempt benefit
• a benefit currently being treated by the previous employers as an exempt benefit in relation to trainees engaged under the Australian Traineeship systems as an exempt benefit
• a fringe benefit currently being treated by the previous employers as an amortised fringe benefit relating to remote area home schemes as an amortised fringe benefit, and
• a benefit as covered by a recurring fringe benefit declaration which would have applied if the employer had not changed.
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