Issue
Does the provision of free travel passes by a third party passenger train operator to employees of a freight train operator constitute an 'in-house residual fringe benefit' as defined under subsection 136(1) of the Fringe Benefits Tax Assessment Act 1986 (FBTAA)?
Decision
No. The provision of free travel passes by a third party passenger train operator to employees of a freight train operator do not constitute an 'in-house residual fringe benefit' as defined under subsection 136(1) of the FBTAA.
Facts
A passenger train transport operator provides free travel passes to employees of a freight train transport operator.
The passenger train transport operator is not related to the freight train transport operator.
Reasons for Decision
The provider of the fringe benefit does not carry on a business that is identical or similar to the type of business carried on by the employer. The business of freight train transport is not considered to be 'identical or similar' to the business of passenger train transport.
Therefore, the fringe benefit cannot be considered to be an 'in-house residual fringe benefit'.