The Supreme Court has agreed to hear several cases filed in High Courts against the controversial Fringe Benefit Tax (FBT). The Government introduced this tax last year in an attempt to expand its direct taxation base and to curb disguised benefits paid to employees such as vacations, club memberships, etc. Businesses argued that while some companies indulged in such unscrupulous methods to avoid taxation, most did not and that business travel was not a benefit but a necessity. They also contest the Government assertion that this is a tax on income since such costs were really expenses. 

Home Page