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«nameordsht»
«address1»
«address2»
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Hello «casual»
URGENT ATTENTION
RE: 2012 FRINGE BENEFITS TAX RETURN
1ST APRIL 2011 TO 31ST MARCH 2012
FBT is one of the areas clearly highlighted by ATO as one of its key audit focus
area for 2012. Entities that fail to lodge FBT returns accurately and in time may
be considered “high-risk” by ATO and are more likely to be audited. This means
that the FBT return has to be prepared accurately and on time.
You may be liable for Fringe Benefits Tax for the above period. The flow chart
below illustrates the action you are required to take in order to comply with your
FBT obligation.
Do you require us
to assess your FBT
liability/status?
Yes
Please
complete
&
sign
the
“Confirmation Form”, “Car Expense
Summary” & “Other Fringe Benefits
Summary Checklist”, if applicable, &
send them back to us on or before 1
May 2012.
No
Please
sign
the
attached “Confirmation
Form” and mail it back
to us on or before 1
May 2012.
Once we send you your 2012
FBT Return & option form,
please complete the option form
and the FBT Return and mail
them to us before 21 May 2012.
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim
any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part
or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution
or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under
the law.
If you engage us to work out your FBT liability/status, please SIGN AND MAIL
the attached “Confirmation Form” and the “Car Expense Summary” to us on or
before 1 May 2012 so that we can calculate your FBT liability. Please note that
our fees for preparing and lodging a standard FBT return (with two or less
benefits) is $XXX.00 plus GST. Fees for preparing FBT returns with more than
two benefits will be based on the time spent on the job.
CAR FRINGE BENEFITS
Car fringe benefit accounts for more than 44% of all FBT revenue collections.
Even if your situation is the same as last year, i.e. you are using the same car
and the same car’s business percentage, your FBT liability this year may be
different due to the period of time the car is owned by the business. In any case,
commissioning us to assess your Company’s FBT liability/status can give you
peace of mind and ensure that you have taken “reasonable” steps to comply with
the FBT legislation.
If you do not have all the information as requested in the Information Sheet for
using the Operating Costs method to calculate the car fringe benefit, we would
recommend that you should opt for the Statutory Formula method. Using the
Statutory Formula method may work out to have a higher FBT liability but it will
save you an enormous amount of time working out car expenses, whether they
are GST-inclusive or GST-exclusive, especially if you are selected for an audit
by the ATO. It is particularly effective when your car has a low business use and
high annual mileage. Please note that more than 80% of the FBT taxpayers
used this method in calculating the car fringe benefit.
OTHER FRINGE BENEFITS
There are other Fringe Benefits which may have been provided by your business
to employees. Please remember that, in the context of FBT, employees also
include directors and associates of directors. We have attached a list of “Other
Fringe Benefits Summary Checklist”. If you say “Yes” to any of the item listed,
please complete the Checklist form and return it to your client manager with the
other two forms by fax/mail on or before 1 May 2012. It will be assumed that
none of the fringe benefits listed was paid to your employees in 2012 FBT year if
the form is not returned to us by 1 May 2012.
We understand that FBT is very complex and the calculations are tedious.
However, we are here to help you. If you have any problem in completing the
attached sheets, do not hesitate to call us and we will be more than happy to
assist you.
Yours faithfully,
(Name of Accounting Firm)
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim
any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part
or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution
or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under
the law.
CONFIRMATION FORM
To:
(Name of Accounting Firm)
(Address 1)
(Address 2)
I confirm that I do/(do not)* have any FBT liability and require/(do not require)*
(Name of Accounting Firm) to assess our Fringe Benefit Tax liability/status for
the year ending 31st of March 2012.
I am aware of the pricing structure for preparing and lodging 2012 FBT return.
Signature:
_________________________
Name (please print)
_________________________
Capacity
Director/Trustee/Partner*
Name of Employer: (please print) _________________________
Date
_________________________
* - delete where inapplicable.
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim
any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part
or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution
or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under
the law.
Car Expense Summary
(One sheet for each car)
2012 FBT YEAR
Name of Employer: ______________________________________
Name of Employee:_______________________________________
Make/Model of Car: _________________Car Registration No: ____________
Name of the car’s registered owner: ___________________________
Base Value of Car: ________________ (GST-inclusive amount, if any)
Date of Acquiring the Car: ___________________________________
Opening Odometer reading as at 1 April 2011: _______________ (Km)
Closing Odometer reading as at 31 March 2012: ___________ (Km)
No. of days the car not available for private use: _____________(days)
Car Expenses supported by receipts/invoices - All amounts should be GSTinclusive where GST applicable (The data below is not required if you opt for
using the statutory method to calculate the taxable value of the car benefit.)
Business Use: _______ (%) – supported by logbook for 12 consecutive weeks.
Car
Leased/Hire-purchase(HP)/fully owned*
If leased, total amount of lease paid per year
_________________________
If hire purchase, term of HP _________(months); Monthly amount: __________
Note – if acquired in 2012 FBT year, please enclose a copy of HP agreement.
Registration & Insurance
_______________
Repairs and servicing
_______________
Fuel & Oil (actual/estimated*)
* - delete where inappropriate
_______________
Other expenses (please specify)
_______________
Expenses paid by employees and not reimbursed
(with details of such payments and GST paid)
_______________
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim
any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part
or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution
or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under
the law.
OTHER FRINGE BENFITS SUMMARY CHECKLIST
The following list summarises other fringe benefits which your business may
have provided to employees during the year. If you think you have provided any
of the following benefits, please tick the appropriate box and fax the form to the
attention of your Client Manager. Your Client Manager will then send you the
appropriate form for completion. If you are unsure whether or not such a fringe
benefit is provided, please discuss with your client manager.
From:
Fax No.:
(Please print the name of the employer)
TYPES OF FRINGE BENEFITS
Yes
Meal Entertainment fringe benefits - If you have paid for food,
No
drink, recreation, or accommodation expense on behalf of an employee
or associate, please contact your client manager who will advise how
that expense is to be treated and whether or not the expense is subject
to FBT.
Expense Payment Fringe Benefit – any expense paid on behalf
of the employees or their associates.
Loan & Debt Waiver Fringe Benefit – Loan provided to an
employee without charging a commercial rate of interest or where an
employer waives an employee from the obligation to repay an
outstanding debt.
Car parking Fringe Benefit – parking provided for an employee
where there is a commercial parking station within one kilometre radius
of the employer’s car parking facility.
Property Fringe Benefit – employee provided with goods and
services at a discount from the employer or another firm under an
arrangement with the employer.
Housing Benefit – arises when an employer gives an employee,
including family members, the right to occupy or use a unit of
accommodation as the usual place of residence
Board Fringe Benefit - arises when an employer provides an
employee with accommodation and meals.
Airlines transport Fringe Benefit – free or discounted air travel
is provided to employees or their associates of an airline or a travel
agent
Living-away-from-home Allowance Fringe Benefit – where
an employee is paid an allowance to cover additional expenses while
the employee is living away from their usual place of residence for
employment reasons
Residual Fringe Benefit – any other benefit not specifically
covered above that are provided in respect of an employee’s
employment
NOTE
Road Toll & E Tag Expenses – not a car fringe benefit; purpose of the journey,
business or private, determines the deductibility of such expenses.
Attention:
(Fax No. of Accounting Firm)
(Please print the name of your Client Manager)
Disclaimer: These notes are intended to be a guide only. Business Intranet Systems Pty. Ltd. (BIS), its directors, employees and consultants expressly disclaim
any and all liability to any person, whether a purchaser or not, for the consequences of anything done or omitted to be done by any such person relying on a part
or the whole of the contents. Do not act on the information without first obtaining specific advice regarding your particular circumstances from a tax professional.
© 2012 Business Intranet Systems Pty Ltd. This document is protected by international copyright laws. It is for your internal use only. Unauthorised distribution
or reproduction of this information, or any part of it, may result in severe civil and criminal penalties, and will be prosecuted to the maximum extent possible under
the law.