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.
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: