As previously reported in "ATO to crack down on Living Away From Home Allowances", review of living away from home allowance (LAFHA) arrangements provided to employees of employers selected by the Australian Taxation Office (ATO) is now in full swing.
Specifically the ATO is requesting the following information with respect to each employee who received a LAFHA during the fringe benefits tax (FBT) year ended 31 March 2010:
- Name and tax file number;
- Work location (postcode)
- Usual place of residence as declared on the employee's LAFH declaration;
- Details of the employee's visa, if their usual place of residence is overseas;
- Title or role within the organisation;
- Amount of salary and wages paid to the employee in the financial year ended 30 June 2010; and
- The total value of LAFHA paid to the employee.
This serves as a timely reminder for all employers to review their LAFHA arrangements with eligible employees to ensure that they are compliant with the requirements under the FBT law and there is adequate substantiation in the event of a request for review by the ATO.
Moore Stephens can provide assistance in this regard by conducting a "healthcheck" on your existing and prospective LAFHA arrangements.
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