A company has PSI. The company paid a motor vehicle fine for $250. The company has paid wages in accordance with PSI rules and also has a balance of PSI to attribute to the individual. When attributing the PSI and the business expenses, is the motor vehicle fine attributed to the individual and by so doing, in effect this reduces the taxable PSI to the individual.
A fine for speeding, parking, etc, is incurred by the driver personally, not the company.
So, cannot be paid by the company without creating an expense fringe benefit - unless it can be just expensed against the person's loan account.
e.g. in VIC, my company has had a few scary notices from VicPol - showing $ 2200 fine. When we nominate the driver, me, the amount is reduced to $ 130 or whatever.
Fines are never tax deductible.
A fine for speeding, parking, etc, is incurred by the driver personally, not the company.
So, cannot be paid by the company without creating an expense fringe benefit - unless it can be just expensed against the person's loan account.
e.g. in VIC, my company has had a few scary notices from VicPol - showing $ 2200 fine. When we nominate the driver, me, the amount is reduced to $ 130 or whatever.
Fines are never tax deductible.
22 Apr 2024 · 6 min read time
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