FBT Q&A ‘ Are closing odometer records still required to be kept when valuing car fringe benefit taxable values?
Where car fringe benefits are being provided to staff, is it still necessary to keep closing odometer records?
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We provide car fringe benefits to our staff and we require them to keep a log book so as we can have the option of using this method to value the benefit and use it if it comes in under the statutory formula value.
Are we required to obtain closing odometer records as at the end of the FBT year?
If you are using the statutory formula method, there is no longer any practical need to keep odometer records as there is now a flat 20% statutory rate regardless of distance travelled.
If you are using the log book method, the relevant periods for which odometer records must be maintained are:
- in a log book year, at the start and end of the applicable log book period and at the start and the end of the holding period; and
- in a non-log book year, at the start and end of the holding period.
Thus, if the car is held for the whole fringe benefits tax year (either a log book year or a non-log book year), then odometer records must be taken at, or as soon as reasonably practicable after, 1 April and 31 March.
Refer sections 10A and 10B of the FBT Act.
Disclaimer: This article is based upon information available as at the time of publishing and may be subject to change.