glenn_downunder

I'm getting ready to put my PR application in and am a bit worried as my company have still been paying me LAFHA even though it was supposed to have stopped last Oct.

does anyone know if this will have an impact on my application?

bcworld

Is there some legitimate reason it was still paid, or a simple mistake or tax evasion?

Presumably someone will have to complete an FBT return at some point and tax may become payable?

glenn_downunder

simple mistake, my boss has said that they were never advised by our tax lawyer. to the best of my knowledge my company has paid the excess.

Bermudashorts

You should be more worried about your tax situation than your visa situation, your company can pay you all the allowances they want, you need to pay tax on it though. Expect a big bill!

Bermudashorts

Has he been living on Neptune! What do you mean paid excess? Excess what?

glenn_downunder

I've lodged my tax return for the year and it was ok, not sure if I am in the clear or not

Bermudashorts

Well you cannot have filled it in properly then, because you definitely should not have been getting the tax benefit of LAFHA. Note that tax returns are not checked as a matter of course, so filling one in and not getting a question means precisely zero.

glenn_downunder

on my PAYG it was down as the reportable Fringe Benefit amount

Hebe

Years ago when we went from 457 to PR the company continued paying the LAFHA during the application process period. We got a tax bill for about $10k and it had to be paid straight away. Also know of a friend in a similar situation who got one for nearly $20k

glenn_downunder

i'm hoping my worst case scenario is that i get a tax bill. i've just been a bit afraid that DIAC might reject the application based my companies actions. Nerve wrecking process

paddyo

DIAC won't care about your tax.....it is not part of the PR process to even ask about it.