Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 67

67. (1) Where-
(a) an employer (in this sub-section referred to as the "eligible employer")
has obtained or, but for this section, would obtain, a tax benefit
in respect of a year of tax in connection with an arrangement under which a
benefit is or was provided to a person, being an arrangement that was entered
into, or commenced to be carried out, on or after 19 September 1985; and

   (b)  it would be concluded that the person, or one of the persons, who
        entered into or carried out the arrangement or any part of the
        arrangement did so for the sole or dominant purpose of enabling the
        eligible employer to obtain a tax benefit in connection with the
        arrangement or of enabling the eligible employer and another employer
        or other employers each to obtain a tax benefit in connection with the
        arrangement (whether or not that person who entered into or carried
        out the arrangement or any part of the arrangement is the
        eligible employer or is the other employer or one of the other
        employers), the Commissioner-

   (c)  may determine that the fringe benefits taxable amount (if any) of the
        eligible employer of the year of tax be increased by the amount of the
        tax benefit; and

   (d)  may determine that appropriate adjustments (if any) be made to the
        fringe benefits taxable amount of the eligible employer in respect of
        another year of tax or of another employer in respect of any
        year of tax, and any such determination has effect accordingly.

(2) A reference in this section to the obtaining by an employer of a tax
benefit in respect of a year of tax in connection with an arrangement under
which a benefit is provided to a person is a reference to an amount not being
included in the fringe benefits taxable amount of the employer of the year of
tax in respect of that benefit where the amount would have been included, or
could reasonably be expected to have been included, in that fringe benefits
taxable amount if the arrangement had not been entered into or carried out.

(3) A reference in this section to the obtaining by an employer of a tax
benefit in respect of a year of tax in connection with an arrangement under
which a benefit is provided to a person does not include a reference to an
amount not being included in the fringe benefits taxable amount of the
employer of the year of tax in respect of that benefit, being an amount that
would have been included, or could reasonably be expected to have been
included, in that fringe benefits taxable amount if the arrangement had not
been entered into or carried out, where the non-inclusion of the amount in
that fringe benefits taxable amount is attributable to the payment or
provision by a person of consideration in respect of the provision of the
benefit.

(4) Where, at any time, an employer considers that the Commissioner ought to
make a determination under paragraph (1) (d) in relation to the employer in
relation to a year of tax, the employer may post to or lodge with the
Commissioner a request in writing for the making by the Commissioner of a
determination under that paragraph.

(5) The Commissioner shall consider the request and serve on the employer a
written notice of the Commissioner's decision on the request.

(6) If the employer is dissatisfied with the Commissioner's decision on the
request, the employer may, within 60 days after service on the employer of
notice of the decision of the Commissioner, post to or lodge with the
Commissioner an objection in writing against the decision stating fully and in
detail the grounds on which the employer relies.

(7) The provisions of Part VI (other than section 80) apply in relation to an
objection made under sub-section (6) in like manner as those provisions apply
in relation to an objection against an assessment.

(8) Nothing in section 74 prevents the amendment of an assessment at any time
before the end of 6 years after the original assessment date if the amendment
is for the purposes of giving effect to sub-section (1) of this section as it
applies by virtue of paragraph (1) (c).

(9) Nothing in section 74 prevents the amendment of an assessment at any time
if the amendment is for the purpose of giving effect to sub-section (1) of
this section as it applies by virtue of paragraph (1) (d).

(10) In this section, a reference to an employer, in relation to an
arrangement, includes a reference to a person who would be, or might
reasonably be expected to be, an employer but for the arrangement.

(11) A reference in this section to the carrying out of an arrangement by a
person shall be read as including a reference to the carrying out of an
arrangement by a person together with another person or other persons.

(12) Nothing in the provisions of this Act other than this section shall be
taken to limit the operation of this section.