FIRSTMATE BLOG: CAPTAINS LOG
GST on FBT Owner Contributions23.06.2014
Question
Our client, a company, provides a car to shareholder employees and then at year end the FBT is offset by a journal to the shareholder’s current account.
When we journal the owner’s contribution for FBT purposes, is there any GST effect?
Also, how is the owner’s contribution shown in the company’s tax return?
Answer
The owner’s contribution will have a GST effect (it is treated as income) and will need to be shown in the company’s tax return as income.