Due to the popularity of Utes, turned SUV-like, the ATO are looking a little closer at any of theses vehicles owned through a business. This is due to the Ute having the potential to be exempt from FBT (Fringe Benefit Tax) when used for minor private use, including travelling to and from work.
If a Ute is found to be mainly used for private use, rather than business, the ATO can charge FBT on all expenses relating to the Ute, including other penalties.
The ATO have advised that their focus is on unusually high work related expenses, including work travel across all industries and occupations, which have increased from prior years.
There is an increased ability to identify and investigate claims that differ from the norm due to the ATO’s improvement in technology and use of data.
One way to mitigate this is to ensure any employees that have been provided a Ute, or car, to complete the correct declarations or simply keep log books.
Please contact our office for more information.
