FBT liability

FBT liability refers to the tax that an employer must pay on certain non-cash benefits provided to employees, such as cars, housing, or entertainment. It's a way for tax authorities to ensure that the value of these benefits is taxed similarly to income. The employer calculates the taxable value of these benefits and pays FBT accordingly, separate from income tax. This system helps create fairness by capturing the value of perks that might otherwise be under-taxed if they were not considered part of regular salary.