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The Australian Taxation Office (ATO) has recently issued advice that they believe where business owners and/or employees are structuring their activites such that frequent flyer points (or other customer loyalty plans) are earned by the business, but enjoyed by the owner or employees, there may well be Income Tax or Fringe Benefits Tax (FBT) implications.
It has generally been accepted that such rewards were exempt from both Tax and FBT due to the compliance costs on both the ATO and on businesses. Clearly, this is no longer the case where the ATO believes there has been contrived arrangements to enable people to access large amounts of points or the like.
The arrangements within your business where flight rewards etc are used may well need to be reviewed in light of the recent position as issued by the ATO.
We will be pleased to assist in your review of your circumstances and the potential implications for you and/or your business.
To discuss this issue in further detail, please contact us on:
admin@mt.com.au
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