If you receive benefits in connection with your role as a director then the FBT rules treat you just like any other employee. If you take a company car home or one is available to you, then FBT applies. If you don't pay for the business' products and services that you use or pay a discounted rate, then FBT applies. Don't forget, even though you might own the company, if you are employed by the company, then the same rules apply to you.
The same goes for associates of Directors. If you pick up expenses for your spouse, kids or relatives, or they benefit from discounted goods and services sold by the business, then FBT will apply.
In some situations you might be able to argue that you have received a benefit in your role as a shareholder of the company rather than as a director. While this might stop FBT from applying, it will trigger another set of rules which will tax you personally on the value of the benefit you have received.
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Last updated April 2013. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.