Firms pay dearly for fringe tax
PA Wellington Companies will have to earn an extra $1.82 to recover each 51 paid in fringe benefits tax, according to a newsletter from an accountancy firm, Lawrence Anderson Buddle. The calculation applies to companies paying the top corporate tax rate of 45c in the dollar. "Fringe benefits tax represents a significant new pusiness cost,” says the newletter to clients. “The rules governing its applica-
tion are complex and in specific areas still uncertain.”
The tax becomes most expensive for employers who, rather than paying corporate tax rates, pay high marginal rates of tax. For employers paying 66c in the dollar, a further $2.94 in additional revenue would be needed to cover 51 of fringe tax, the newsletter says. At the rate of 56.1 c, a. further $2.27 needs to be earned to cover ?1 of fringe tax, the letter says.
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Press, 25 May 1985, Page 4
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147Firms pay dearly for fringe tax Press, 25 May 1985, Page 4
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