You may provide company vehicles to some employees. In some cases, the vehicle is a work tool – for example, a ute for a project manager. In other cases, it is part of a salary package.
Whatever the reason, Inland Revenue has good news and bad news.
The good news is that IRD has consolidated all its published statements on motor vehicle Fringe Benefit Tax (FBT) into one 57-page document with a logical flow, making the topic easier for you to understand. Although that doesn’t necessarily mean it’s easy!
The bad news is that IRD’s views on how FBT applies may, in some circumstances, be a bit contentious.
The new document, according to IRD, should give taxpayers increased certainty in understanding their FBT obligations in relation to motor vehicles, and lead to better compliance.
There is potential for uncertainty over interpretation of some matters, so please give us a call if you would like to review your current FBT risk or if you would like to find out if there are any opportunities to minimise your exposure to FBT.