Fringe Benefit Tax Warrant of Fitness

There have been major changes to the Fringe Benefit Tax (FBT) rules in recent years that all employers need to be fully aware of. These changes have increased the complexity of the FBT system such that preparing and filing an FBT return has become a more complex exercise.

In our experience, IRD tax audits often reveal non-compliance with the FBT rules. This non-compliance exposes employers to significant use of money interest and shortfall penalties.

In saying that, the new rules and rates also provide some planning opportunities to reduce FBT costs. Our FBT Warrant of Fitness (WOF) has been developed in response to this perceived need.

In order to ensure that your FBT affairs are in order, we strongly recommend that an FBT WOF be undertaken in order to fully assess your FBT system. The key benefits we offer include:

  • Ensuring FBT is being correctly accounted for
  • Ensuring compliance with the current FBT rules
  • Minimising exposure to IRD penalties
  • Identifying any potential issues and developing a plan to manage them
  • Saving on FBT compliance costs
  • Identifying opportunities to save tax.
It is critical that a robust FBT system is implemented by the employer to ensure full compliance. The WOF provides a high level of assurance that FBT is being correctly and efficiently managed.

The WOF involves us meeting with key personnel to review the FBT system. We find that as well as providing a comprehensive review of the company’s FBT system, it provides an excellent opportunity to ask specific questions about FBT.

If you would like us to undertake an FBT WOF or if you wish to find out more, please contact us.

Auckland: David Dorrington - (09) 355 8301
Napier: Giles Pearson - (06) 835 6144
New Plymouth: Pauline Lockett - (06) 757 5477
Wellington: Graham Archer - (04) 462 7271
Christchurch: Paul Lynskey - (03) 374 3010
Dunedin: Richard McKnight - (03) 477 8784