POPULAR WORDS

The Australian Taxation Office (ATO) has yet to finalise its rulings outlining the interaction of GST and fringe benefits tax (FBT), despite the FBT reporting year ending tomorrow, March 31. The rulings (now in draft form), GSTR 2000/D17 and TR 2000/D8, explain how the GST applies to the supply of fringe benefits, and the operation of the new fringe benefits tax gross-up formula to apply from April 1, 2000. National Tax and Accountants' Association (NTAA) president Ray Regan says employers providing fringe benefits to over 1 million employees are furious because the ATO has still not finalised their two FBT/GST rulings. He warns that businesses face the prospect of preparing incorrect 2001 FBT returns as a result of the maze of confusion created by the GST. "The fact that the Tax Office has still not finalised their two FBT/GST rulings has meant that there are many unresolved questions related to the interaction between FBT and GST. "An example is which FBT gross-up rate employers should use when paying employee credit card bills," Regan says. However, a spokesperson for the ATO says the lodgment date for FBT returns has been extended to May 21 and the rulings will be finalised by then. "The rulings in question are due for final release in mid-April," she says.