Superannuation Contributions Tax: Reportable Fringe Benefit and liability to Termination Payments Tax

Is a taxpayer, entitled to amend an assessment for purposes of the Termination Payments Tax (Assessment and Collection) Act 1997 (TPTA) where the reportable fringe benefits amount is incorrect?

Yes, the taxpayer is entitled to amend an assessment where the reportable fringe benefits amount is incorrect.

The taxpayer's income tax return incorrectly recorded the reportable fringe benefits amount as greater than it was. The taxpayer provided a copy of the group certificate stating the correct amount. As a result of the incorrect figure, the taxpayer's adjusted taxable income was overstated for purposes of the termination payments surcharge.

Section 31 of the (TPTA) includes in a taxpayer's adjusted taxable income, the amount of reportable fringe benefits.

Section 12 of the (TPTA) provides that the Commissioner may amend an assessment of surcharge where a taxpayer's adjusted taxable income is reduced.

The taxpayer informed the ATO that there was an overstatement of the reportable fringe benefit. This meant that the taxpayer's adjusted taxable income for surcharge purposes was greater than it should have been. The Commissioner is able to amend the assessment to reduce the adjusted taxable income.