BALDWINS • FoodLegal

Australian Lawyers and Consultants

Additional Leverage for Employee Benefit Schemes
Essenbourne opens the door!

April 2003

Baldwins is now preparing objections against Fringe Benefits Tax (‘FBT’) assessed adversely against taxpayers who entered into Employee Benefit Arrangements with a range of different scheme promoters. Although each scheme was different, many of the schemes shared the same characteristics or were schemes established along the same lines as in the case of Essenbourne Pty Limited v Commissioner of Taxation [2002] FCA 1577 (17 December 2002).

Justice Kiefel’s decision in the Federal Court appears to have opened the door for objections against adverse FBT assessments and penalties.

The Tax Commissioner announced in a Media Release on 14 March 2003 that the Tax Office does not accept aspects of Justice Kiefel’s decision and that the ATO continues to believe in the principles outlined in its Taxation Ruling TR 1999/5. Yet, Justice Kiefel’s telling comments on the FBT argument may apply to many taxpayers who entered these types of schemes.

The time limit for lodging an objection is 60 days from the date of service of your Amended Assessment, so you may need to act quickly.

For further information, contact Joe Lederman at BALDWINS, Australian Lawyers & Consultants.

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