Fringe benefits tax: if an employer refrains from claiming an income tax deduction for deductible expenditure incurred in providing a fringe benefit to an employee, is the employer relieved from any fringe benefits tax liability which exists in the circumstances?

No. Fringe benefits tax is imposed on the taxable value of fringe benefits provided to employees of the taxpayer (or their associates). The Fringe Benefits Tax Assessment Act 1986 defines the classes of fringe benefits which are subject to the tax and describes the calculation of the relevant taxable values.

Whether the employer obtains a tax deduction for expenditure incurred in providing a fringe benefit is irrelevant in determining the status of the benefit under the Act or in the calculation of its taxable value.