FBT Avoidance through an arrangement where an employer repays an employee's loan from a purported employee share trust

An advisory firm promotes, recommends or offers an arrangement to an employer intending to provide an effective after tax benefit to employees. 2. The employer makes contact with the advisory firm to implement this arrangement. 3. The employer establishes an employee benefit arrangement which operates through a trust. 4. The employer makes a loan contribution to the trust. 5. The trustee of the trust uses the funds to provide an interest free loan to one or more employees. 6. The employees use the funds borrowed from the trustee of the trust to acquire units in the trust. 7. The trustee invests in the employer by acquiring shares and notionally allocates those shares to the units. 8. The employees enter into an effective SSA with the employer. 9. The employer provides a benefit to employees, by paying salary sacrificed amounts to the trustee as repayments of the employee loans. 10. The employee loan is reduced by the amount of the repayment. 11. The trustee makes loan repayments to the employer. 12. The employer does not appear to include the taxable value of the benefit provided in its FBT liability.