The AAT has held that a taxpayer had underpaid superannuation in relation to delivery drivers it employed and remitted the matter back to the Commissioner for reassessment.
The Commissioner had issued superannuation guarantee charge (SGC) assessments to the taxpayer following an audit. The assessments covered 5 quarters, commencing 1 April 2009 and concluding the quarter ending 30 June 2010. The taxpayer had an agreement with its drivers that their remuneration be allocated as follows: 80% for allowances for motor vehicle expenses and 20% for wages. The Commissioner submitted that all amounts paid to the drivers were part of income or wages and that no superannuation guarantee contributions had been paid on behalf of these employees. The taxpayer argued the “allowances” were reimbursements for private motor vehicle expenses and not relevant in to the SGC calculation.
The AAT was not satisfied that the “allowances” were in fact reimbursements of actual expenses. Rather, it agreed with the Commissioner that they satisfied the legal definition of “wages”. The AAT also accepted that there were underpayments in relation to 2 administrative staff. Further, it also noted there were nominal interest and penalties which were to be assessed. Accordingly, the AAT remitted the matter to the Commissioner for reassessment.
(AAT Case [2013] AATA 10, Re Penrowse Pty Ltd and FCT, AAT, Ref Nos: 2012/2571 and 2012/2572, Levy SM, 11 January 2013.)
[LTN 8, 14/1/13]