People generally are not overly enthusiastic about filing and paying taxes. However, businesses seem to reserve a special disdain for fringe benefit tax or FBT. FBT is seen as overly complex and difficult to comply with compared to other taxes.
For years FBT has been put in the too hard basket by IRD and taxpayers alike. FBT is an annoyance for businesses as it is time consuming for businesses to comply with but is barely a rounding error in the overall tax take. However, while FBT is a low-value annoyance, FBT is an important anti-avoidance measure that serves a very useful purpose in preventing cash-pay being diverted to non-cash pay. Therefore, FBT is not going away anytime soon.
Read more about it on our blog ?