ATO Interpretative Decision
ATO ID 2002/102
Fringe Benefits Tax
Fringe Benefits Tax - Changing the basis for valuing car fringe benefits-
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you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed.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
Can a request for an amendment of a Fringe Benefits Tax (FBT) return after the return has been lodged, to change the method used to value a car fringe benefit from the statutory formula to the operating cost method, be allowed under subsection 10(4) of the Fringe Benefit Tax Assessment Act 1986 (FBTAA)?
Decision
Yes. A request for an amendment of an FBT return after the return has been lodged, to change the method used to value a car fringe benefit from the statutory formula to the operating cost method, can be allowed under subsection 10(4) of the FBTAA.
Facts
The employer lodged an FBT return using the statutory formula method to calculate the value of a vehicle as the log book was misplaced. Subsequently, the log book was found. A comparison of the taxable value of the vehicle using the operating cost method as against the statutory formula method revealed that the value was lower under the operating cost method. The employer requested an amendment to the original assessment.
Reasons for Decision
As required under subsection 10(4) of the FBTAA, an employer wishing to use the operating cost method to value a car fringe benefit is required to make an election in writing to the Commissioner on or before 'the declaration date'. This date is defined in subsection 136(1) of the FBTAA as 'the date of lodgment of the return of the fringe benefits taxable amount of the employer of the year of tax, or such later date as the Commissioner allows'.
It is considered appropriate in the specific circumstances of the employer for the Commissioner to extend the declaration date to accept a late election by the employer to allow the operating cost method of valuing the car fringe benefit.
Amendment History
| Date of Amendment | Part | Comment |
|---|---|---|
| 22 December 2017 | Decision | Replaced 'a' with 'an' |
| Facts | Replaced 'a' with 'an' |
Year of income: Year ended 31 March 2001
Legislative References:
Fringe Benefits Tax Assessment Act 1986
Subsection 10(4)
Subsection 136(1)
Keywords
FBT car
FBT operating cost
FBT statutory formula
Date reviewed: 30 November 2017
ISSN: 1445-2782
| Date: | Version: | |
| 16 November 2001 | Original statement | |
| You are here | 22 December 2017 | Updated statement |