THE NEWS WRAP: Government set to crackdown on fringe benefits tax in next week’s budget

The Government is to reform fringe benefits tax rules on company cars in next week’s budget in order to save nearly $1 billion, Fairfax newspapers have reported.

The change will remove the incentive to maximise the distance driven by people who use company cars for personal use.

The crackdown, which will be framed as a way to save tax payer dollars and save fuel, follows accusations that people are manipulating the system by driving more than they normally would.

Potato king has assets frozen

More than $40 million in assets belonging to potato magnate Paul Rennie have been frozen by the Australian Tax Office.

The Federal Court heard allegations that Rennie was involved in tax avoidance schemes dating back to 1997. He’s been charged with defrauding the Commonwealth and dealing in the proceeds of crime.

Internet giants mull Skype deal

Facebook and Google are each considering taking over or partnering with Skype, according to reports.

The two internet giants are understood to be talking independently of one another with Skype, which has put plans for a $100 million IPO on hold. Skype was previously owned by eBay, which subsequently sold 65% of the company to a group of private investors.

Overnight

The Dow Jones Industrial Average fell by 139.41 points to 12,584.17 today. The Australian dollar was down to 105.66 US cents.