The FBT season has rolled around once again and with it comes the requirement for automotive retailers to effectively manage their compliance and keep up to date with recent legislative and ruling updates.
The Moore Stephens Automotive FBT for automotive retailers bulletin outlines some of the most relevant updates that impact automotive retailers. The bulletin highlights the following:
- Transition to a flat 20% for the statutory method calculation
- The use of car pooling; effective minimisation of taxable values
- Exempt cars; not always what they appear to be
- Entertainment; accessing exemptions with effective documentation
FBT costs to automotive retailers can represent up to 8% to 10% of a dealerships net profit before tax with car benefits generally the biggest contributor. We encourage our clients to review their taxable value calculations along with their policies, procedures and documentation.
Moore Stephens Automotive can assist in minimising FBT costs, with an industry specific tax review.
To obtain a copy of our FBT bulletin, click here
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