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Edited version of private ruling
Authorisation Number: 1011676935257
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Ruling
Subject: Fringe benefits tax: Reimbursement of motor vehicle expenses
Question 1
Will the reimbursement of your employee's motor vehicle expenses on a cents per kilometre basis for travel incurred as a result of the temporary relocation of your business premises be an exempt benefit under section 22 of the Fringe Benefits Tax Assessment Act 1986(FBTAA)?
Answer
Yes.
Question 2
Are you required to withhold Pay-As-You-Go (PAYG) instalments from the motor vehicle expense reimbursements paid to your employees as a result of the temporary relocation of your business premises in accordance with section 12-35 of Schedule 1 to the Taxation Administration Act 1953 (TAA)?
Answer
Yes.
This ruling applies for the following period<s>:
Year ended 31 March 2011
Relevant facts and circumstances
You are a manufacturer who had to temporarily relocate to another plant after a fire destroyed the plant you operated from. It is your intention to return to the original plant once it has been rebuilt.
For many of your employees employment at the temporary plant involves extra time and distance to travel to work. You propose to reimburse these employees for their additional travel costs. Calculation of the additional travel costs will be calculated on the extra kilometres travelled and costed on a cents per kilometre basis.
The reimbursements will only be available to employees who submit a reimbursement expense claim that validates the claim for additional travel.
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
Relevant legislative provisions
Fringe Benefits Tax Assessment Act 1986 Section 22
Income Tax Assessment Act 1997 Section 15-70
Taxation Administration Act 1953 Schedule 1 section 12-35