FBT 2016: Are your processes stuck in the 90s?

FBT 2016: Are your processes stuck in the 90s?

In a year lacking significant fringe benefits tax (FBT) legislative reform, the focus for CFOs and Tax Managers needs to be on process improvement, cost savings and risk management. Too many teams waste hours of valuable time collecting paper declarations and staring at general ledger dumps.

Related content

From a risk perspective, time is better spent on the identification of fringe benefits by ensuring that there are open communication lines between teams. With FBT, the larger risk is usually what is not in the return.

To add value, often time is better spent speaking with those who have a detailed understanding of ‘what happens at site’, doing research and making informed decisions as to whether it is reasonable to exclude a benefit, apply a different valuation methodology or improve processes. Time pressure and lack of information can lead to unnecessary conservatism and overpayment of FBT.

In a time where we are all being told ‘cash is king’, the tax and finance teams within organisations cannot afford to miss opportunities to save costs.

With this in mind, here are our ‘top tips’ to survive:

  • Make friends with someone in IT: ask for the investment of someone from the IT team with great excel skills to help brainstorm ideas for automation and analysis.
  • Meet now (and at least biannually) with site HR, Fleet, Property and Ops to learn what projects they are working on and how the data collection for FBT might run more efficiently.
  • Stop paying too much FBT on cars and car parking: there have been significant technology developments in electronic record keeping with more competition lowering costs, creating better, less invasive technology, with many benefits other than lower FBT including fleet care and optimisation, and supporting OH&S initiatives.
  • Go digital on your declarations: save time and increase efficiencies through the use of electronic declarations.

Tax Insights

KPMG Australia's analysis of tax issues and developments.

 
Read more

Global Mobility Services

Global Mobility Services

KPMG offers advisory and compliance services, and outstanding technology, to help clients manage tax for an international workforce.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform