The ATO have today announced they will be ramping up their investigations into the private use of business owned motor vehicles.
During November, they will be writing to Accountants and advising them of their business Clients whom own motor vehicles but who are not lodging Fringe Benefits Tax Returns declaring private use of those vehicles! The Accountants and their Clients will then be asked “have they been doing the right thing”? And if not, now is the time to get things in order to minimise the damage!
Private Use of Business Motor Vehicles means Fringe Benefits Tax
Very few new Clients who come to us have ever lodged Fringe Benefits Tax Returns, and they are often surprised to learn from us that they likely should have been.
This is because unfortunately, frustratingly, so many other Accountants out there just aren’t giving them the correct advice, or otherwise they are too busy or too lazy to do the right thing by them in this regard (Sorry, have seen some average stuff from other Accountants recently).
But the reality is, if your business owns any motor vehicles that are used privately (including simply driving to and from work) then an obligation to lodge Fringe Benefits Tax Returns (being a separate return to your traditional Income Tax Return) likely exists!
What to expect
So if you are an existing Client of CapitalQ, and you happen to be on their list, we will be in contact soon to ensure we have “all the facts” and decide a course of action. If you are not an existing Client, and have never lodged a Fringe Benefits Tax Return but have a business owned vehicle that you use privately as well, maybe it is time to consider are you getting the advice and service you need and deserve!
And if you have any doubts, request our FREE Guide “The Savvy Business Owners and Investors Guide to Choosing the Right Accountant and Advisor for Today’s Economic Climate” (valued at $49).
(While you are waiting for it to arrive in the mail, you can also instantly download a trimmed down version entitled the “Business Owners & Investors Due Diligence Checklist: The 7 Critical Questions You MUST Ask Before Hiring an Accountant”. )