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Chapter 6: Fringe Benefits Tax
81
Chapter 6:
Fringe Benefits Tax
Notes re calculations:
- As per the FBT return form, Grossed up and Taxable amounts
are presented in whole dollars, for example $3,000.35 and $3,000.88 both become $3,000.
- As per the ATO website new FBT car calculator the private use
percentage used when calculating the Operating Cost method is rounded down, for example 54.4% and 54.8% both become 54%.
1. Fringe Benefits are employment benefits provided by the employer that are not
paid in the form of salary, but form part of a salary package. These benefits can be part of, or in place of salaries and wages. A fringe benefit generally applies to non-cash benefits such as the private use of a company car or payment of entertainment expenses.
2. Tests needing to be satisfied in order for FBT to apply are:
Is there a benefit? Is it provided during the year of tax? Is it provided by an employer or third party? Is it provided in respect of employment? Is it provided to an employee or associate?
3. The fringe benefit year runs from the 1st April to the 31st March.
4. ( a ) ( c ) ( d ) ( e ) ( f ) provided that it is for private travel.
5. With the introduction of the Fringe Benefits Tax Assessment Act, the employer who provides the benefit is liable to pay fringe benefits tax. This is totally separate from the income tax liability of the company.
6. 46.5%
7. Since 1 April 1994 the value of a fringe benefit must be grossed up before
calculating the amount of FBT payable. The formula is as follows:
Grossed up value = Taxable of Fringe Benefit x 1
(1 - FBT rate)
This procedure is done because FBT is deductible.
Solutions
82
8. Grossed up value x FBT rate
9. Where GST is included in the employer's costs of providing a fringe benefit, and the employer is able to claim an input tax credit. The benefit is known as a Type 1 fringe benefit and the gross up factor is equal to 2.0647. Fringe benefits that are not Type 1 benefits are known as Type 2 fringe benefits. Benefits will be Type 2 where the cost to the employer of providing the benefit did not include GST or, where GST was charged, the employer was not eligible to claim an input tax credit in its BAS. The Type 2 fringe benefit gross up factor is equal to 1.8692.
10. Statutory Formula Method Operating Cost Method
ABC - E C x (100% - BP) - R
D
A = Base value of the vehicle. Note that this is the cost price at the
earliest time the vehicle is held by the employer, or two-thirds
of the cost price if the vehicle is held for more than 4 years.
The cost price (GST incl.) includes the costs of acquisition
together with the cost of any non-business accessories fitted to
the car at purchase or when added.
B = Statutory rate based on total kilometres travelled in the tax year
(see table below).
C = Number of days available for private use by the employee in the
tax year.
D = Number of days in the FBT year (usually 365 but 366 in leap
years).
E = Any employee contributions (petrol, repairs, etc.)
Every year the employer has the option of choosing either method for each individual vehicle. If the employer makes no choice the Statutory Formula method is automatically used. If the Operating Cost method is chosen but the Statutory Formula method produces a lower amount payable then that lower amount is applied.
11. A benchmark interest rate is determined and set by the ATO to use when calculating FBT.
6.65% for the year ended 31st March 2011.
Chapter 6: Fringe Benefits Tax
83
12. The balance of Fringe Benefits Tax payable should be paid by 21st May. Depending on the amount of fringe benefits tax liability, the employer may have to pay it on a quarterly basis.
This occurs when: Fringe benefits tax was paid last year. The FBT tax liability in the previous year is calculated to be $3,000 or above. The quarterly payments are made with the BAS and the balance due if any is due with the lodgement at 21 May.
Multiple Choice
Question Answer
13. c
14. b
15. d
16. a
17.
Term Definition
1. b
2. i
3. a
4. h
5. e
6. g
7. d
8. c
Solutions
84
18. 4 Name of employee: Edge Auto Pty Ltd 5 Postal address: P.O. Box 356 Carlton Vic 3053 10 No of employees receiving benefits: 12 12 Do you expect to lodge an FBT return: Yes
13 Type 1 2,495 x 2.0647 $ 5,151 Type 2 25,998 x 1.8692 $48,595 Type C $0
14 Fringe Benefits Taxable Amount $53,746.00
15 Amount of tax payable $24,991.89 18 Sub-total $24,991.89 19 Less Instalment Amount $24,000 20 Payment due $991.89 22 Car using the statutory formula A 5 1,163 9,367 Car using the operating cost B 2 261 2,495 Loans granted C 1 980 Expense payments E 3,000 15,650
Chapter 6: Fringe Benefits Tax
85
19.
TRUE
FALSE
a. The taxable value of a fringe benefit may be increased by the otherwise deductible rule.
F
b. The final Fringe Benefits Tax payment should be paid by 21 June.
F
c. Fringe benefits received by employees are included on their payment summary.
T
d. Prior to providing a motor vehicle benefit an employer must elect which method to use.
F
e. A type 1 benefit is where GST is included in the employer's costs of providing a fringe benefit
T
f. Fringe benefits tax is paid by employers. T
g. Fringe benefits tax is not payable if the benefit is provided by someone other than the employer.
F
h. Fringe benefits are included as assessable income for the employee.
F
i. A cash entertainment allowance is classified as a fringe benefit.
F
j. Fringe benefits tax is self assessed by the employer. T
Solutions
86
20.
Grossed up value (Type 1) = $12,000 x 2.0647 = $24,776
Grossed up value (Type 2) = $7,000 x 1.8692 = $ 13,084
Total grossed up value = $37,860
FBT liability = $37,860 x 46.5% = $17,604.90
21. 14,000 x 365/151 = 33,841 kms
22. ( b ) 23. ( a ) Using statutory formula
Total kilometres = 80,000 (> 40,000) - therefore statutory fraction = 0.07
A = $45,000 B = 0.07 C = 365 D = 365 E = $ 1,250
A B C - E = 45,000 x 0.07 x 365 - 1250 = $1,900.00
D 365 ( b ) Using operating cost
Depreciation = $45,000 x 25% = $11,250 Deemed interest = $45,000 x 6.65% = $ 2,992 $ 14,242 C x (100% - BP) - R
(1,560 + 420 + 680 + 400 + 590 + 1,200 + 14,242) x (100% - [35/80 x 100] - 1,250
= (19,092 x 56%) - $1,250
= $9,441 Private use % rounded down to 56%
Chapter 6: Fringe Benefits Tax
87
24. Taxable amount = $15,000x(6.65%- 3.5%) = $472
Grossed up value = $472 x 1.8692 = $882
FBT payable = $882 x 46.5% = $410.13 25.
2009 2010 2011
28 July $5,000 $5,500 $7,500
28 October 5,000 5,500 7,500
28 February 5,000 5,500 7,500
28 April 7,000 13,500 3,500
21 May 2,000 8,000 (4,000)
22,000 30,000 26,000
Solutions
88
26. Vehicle 1: Using statutory formula Total kilometres = 28,000 - therefore statutory fraction = 0.11
A = $29,300 B = 0.11 C = 365 D = 365 E = $ 965
A B C - E = 29,300 x 0.11 x 365 - 965 = $2,258
D 365
Using operating cost WDV at 1.4.10 = $16,938 Depreciation = $16,938 x 0.25 = $4,234 Deemed interest = $16,938 x 0.0665 = $1,126
$5,360
C x (100% - BP) - R
(1600 + 120 + 1890 + 580 + 1200 + 5,360 ) x (100% - [12650/28000 x 100] - 965
= (10,755 x 54%) - $965
= $4,842
Vehicle 2: Using statutory formula Annualised number of kilometres
31,000 x 365 = 41,296 km 274 Statutory fraction = 0.07
A = $32,500 B = 0.07 C = 274 D = 365 E = $ 0
A B C - E = 32,500 x 0.07 x 274 - 0 = $1,708
D 365
Using operating cost
Lease charges = $4,500
C x (100% - BP) - R
= (1100 + 60 + 1240 + 580 + 4,500) x (100% - [16,000/31,000 x 100] - 0
= ( 7,480 x 48%) – 0 = $3,590
Harry’s Hardware Pty. Ltd. should use the statutory formula method for both vehicles.
Chapter 6: Fringe Benefits Tax
89
27. 4 Name of employee: JR Concrete Pty Ltd 5 Postal address: 196 Appin St. Samsony WA 6163 10 No of employees receiving benefits: 10 12 Do you expect to lodge an FBT return: Yes
13 Type 1 12,025 x 2.0647 $24,828 Type 2 28,712 x 1.8692 $53,668 Type C $0
14 Fringe Benefits Taxable Amount $78,496.00
15 Amount of tax payable $36,500.64 18 Sub-total $36,500.64 19 Less Instalment Amount $19,500 20 Payment due $17,000.64 22 Car using the statutory formula A 2 1,860 7,482 Car using the operating cost B 2 680 3,825 Loans granted C 1 1,580 Expense payments E 15,650 Car Parking 8,200 Debt Waiver 4,000
Solutions
90
28. 4 Name of employee: ATT Communications Pty Ltd 5 Postal address: 11 Thompson Ave. Adelaide SA 6163 10 No of employees receiving benefits: 11 12 Do you expect to lodge an FBT return: Yes
13 Type 1 26,540 x 2.0647 $54,797 Type 2 52,810 x 1.8692 $98,712 Type C $0
14 Fringe Benefits Taxable Amount $153,509.00
15 Amount of tax payable $71,381.69 18 Sub-total $71,381.69 19 Less Instalment Amount $36,000 20 Payment due $35,381.69 22 Car using the statutory formula A 4 3,650 21,840 Car using the operating cost B 3 1,280 8,420 Loans granted C 2 7,900 Expense payments E 27,550 Meal Entertainment 4,700 Debt Waiver 7,400 Other Benefits 1,540
Chapter 6: Fringe Benefits Tax
91
29. Solution: Operating Cost Method
Jason Bright
1. C x (100% - BP) - R
C = Actual costs ( 420 + 1,050 + 210 + 2,800 + 320 )
Deemed costs
Depreciation 7,530 ( 30,120 x *25% )
Interest 2,002 ( 30,120 x 6.65% )
9,532
= 4,800
9,532 $14,332
14,332 x ( 100% - ((26,000/41,000 x 100 )) – 0
= 14,332 x 36%
= $5,159
* purchased 15th March 2008 thus 25%.
2. 5,159 x 2.0647 = $10,651
3. FBT = 10,651 x .465 = $4,952.71
Solution: Statutory Formula Method
1. ABC – E
D
= 46,000 x 0.07 x 365 - 0
365
= $3,220
2. 3,220 x 2.0647 = $6,648
3. FBT = 6,648 x .465 = $3,091.32
Solutions
92
Solution: Operating Cost Method
Mark Skaife ( Lease )
C x (100% - BP) - R
C = Actual costs ( 6,800 + 460 + 1,630 + 600 + 1,200 + 180 ) = 10,870
Lease costs: $6,800
10,870 x ( 100% - ((8,000/24,000 x 100 )) – 520
= ( 10,870 x 66% ) – 520
= $6,654 Taxable value
( No deemed costs for leases )
2. 6,654 X 2.0647 = $13,738 Grossed up value
3. FBT = 13,738 x .465 = $6,388.17
Solution: Statutory Formula Method
1. ABC – E
D
= 62,000 x 0.11 x 335 - 520 ( Annualised kilometres = 26,149 )
365
= $5,739
2. 5,739 x 2.0647
$11,849
3. FBT = 11,849 x .465
$5,509.78
Chapter 6: Fringe Benefits Tax
93
Solution: Operating Cost Method
Craig Lowndes
1. C x (100% - BP) - R
C = Actual costs ( 420 + 760 + 280 + 2,500 + 680 )
Deemed costs
Depreciation 5,287 ( 21,149 x *25% )
Interest 1,406 ( 21,149 x 6.65% )
6,693
= 4,640
6,693 $11,333
11,333 x ( 100% - ((18,000/38,000 x 100 )) – 810
= (11,333 x 52%) – 810
= $5,083
* purchased 23 May 2008 thus 25%.
2. 5,083 x 2.0647 = $10,494
3. FBT = 10,494 x .465 = $4,879.71
Solution: Statutory Formula Method
1. ABC – E
D
= 31,000 x 0.11 x 365 - 810
365
= $2,600
2. 2,600 x 2.0647 = $5,368
3. FBT = 5,368 x .465 = $2,496.12
Solutions
94
Solution: Operating Cost Method
Larry Perkins ( Lease )
C x (100% - BP) - R
C = Actual costs ( 5,200 + 460 + 1,280 + 420 + 1,580 + 800 ) = 9,740
( Lease costs: $5,200)
9,740 x ( 100% - ((21,000/29,000 x 100 ))
= 9,740 x 27%
= $2,629
( No deemed costs for leases )
2. 2,629 X 2.0647 = $5,428
3. FBT = 5,428 x .465 = $2,524.02
Solution: Statutory Formula Method
1. ABC – E
D
= 54,000 x 0.07 x 182
365
=
Annualised Kilometres = 29,000 x 365/182 = 58,159 km, therefore
statutory rate = .07
$1,884
2. 1,884 x 2.0647
$3,889
3. FBT = 3,889 x .465
$1,808.38
Chapter 6: Fringe Benefits Tax
95
Solution: Operating Cost Method John Bowe ( Lease )
C x (100% - BP) - R
C = Actual costs ( 5,700 + 460 + 1,100 + 520 + 2,150 + 440 ) = 10,370
( Lease costs $5,700 )
10,370x ( 100% - ((16,000/33,000 x 100 )) – 1240
= ( 10,370 x 51% ) -1,240
= $4,048
( No deemed costs for leases )
2. 4,048 X 2.0647 = $8,357
3. FBT = 8,357 x .465 = $3,886
Solution: Statutory Formula Method
1. ABC – E
D
= 58,000 x 0.11 x 356 - 1240
365
= $4,982
2. 4,982 x 2.0647
$10,286
3. FBT = 10,286 x .465
$4,782.99
Solutions
96
Solution: Operating Cost Method
Mark Webber
1. C x (100% - BP) - R
C = Actual costs ( 420 + 820 + 330 + 1,750 + 1,050 )
Deemed costs
Depreciation 6,128 ( 32,656 x *25% ) x 274/365
Interest 1,630 ( 32,656 x 6.65% ) x 274/365
7,758
= 4,370
7,758 $12,128
12,128 x ( 100% - ((22,000/27,000 x 100 )) – 180
= ( 12,128 x 18% ) -180
= $2,003
* purchased 1st July 2009 thus 25%.
2. 2,003 x 2.0647 = $4,135
3. FBT = 4,135 x .465 = $1,922.77
Solution: Statutory Formula Method
1. ABC – E
D
= 38,000 x 0.11 x 274 - 180
365
= $2,957
2. 2,957 x 2.0647 = $6,105
3. FBT = 6,105 x .465 = $2,838.82
Recommendations:
Driver Most Tax Efficient Method Bright Statutory Formula Method Skaife Statutory Formula Method
Lowndes Statutory Formula Method Perkins Statutory Formula Method Bowe Operating Cost Method
Webber Operating Cost Method
Chapter 6: Fringe Benefits Tax
97
SOLUTIONS TO SUPPLEMENTARY QUESTIONS 1.
( a ) Yes – benefit provided by employer to employee. ( b ) Yes – benefit provided by employer to future employee.
( c ) Yes – benefit provided by 3rd party (arranged by employer) to employee.
2.
( a ) No – benefit taken by proprietor, not employee
( b ) No – benefit provided as possible inducement, not in respect of
employment. ( c ) Yes – benefit provided by employer to associate of employee
(daughter)
( d ) Yes – benefit provided by employer to past employee
3.
( a ) No – benefit provided as possible inducement, not in respect of employment.
( b ) Yes – it is not necessary for there to be other forms of remuneration. Each benefit is considered independent of other remuneration.
( c ) Yes – an employee of an exempt body is still subject to the same provisions.
( d ) No – no employer/employee relationship exists. ( e ) No – no employer/employee relationship exists. The stereo may
be assessed as a non-cash business benefit.
Solutions
98
4.
Type 1 Benefits $ $
Car benefit - Saab Turbo 3,800 x 2.0647 7,845
Type 2 Benefits
Low Interest Loan 690
Car benefit – Volkswagen (pre GST) 12,700
Debt Waiver Benefit 5,200
Expenses benefit – School Fees (GST free) 8,730
27,320 x 1.8692 51,066 58,911 X 46.5%
Fringe Benefits Tax Payable $27,393.61
5.
Type 1 Benefits $ $
Car benefit – Holden Commodore 7,200
GST inclusive Food 3,800
Expense payment – holiday 4,300
15,300 x 2.0647 31,589
Type 2 Benefits Slushee Drinks Dispenser 1,400 GST Free Food 2,900
4,300 x 1.8692 8,037 39,626 X 46.5%
Fringe Benefits Tax Payable $18,426.09
6.
Type 1 Benefits $ $
Packaged Liquor 7,200
Car benefit – Ford Focus 6,300
Expense payment – private travel 3,800
17,300 x 2.0647 35,719
Type 2 Benefits
Expense benefit – parking fines 4,300 Residual benefit – poster 5,000
9,300 x 1.8692 17,383 53,102 x 46.5%
Fringe Benefits Tax Payable $24,692.43
Chapter 6: Fringe Benefits Tax
99
7. Value of Benefit = $33,000 x 11% = $3,630
8. Annualised kms = 9,500 x 365/182 = 19,052km
Statutory Fraction = 20%
Value of Benefit = ($21,000 x 20% x 182/365 ) - $900 = $1,194
9. Business use 5,780/6,250 = 93%
Private use 100% - 93% = 7% (Rounded down)
Operating costs Running costs 5,600 Deemed Interest (63,000 x 6.65%) 4,189 Deemed Depreciation (63,000 x 25%) 15,750 $25,539
Value of Benefit = 25,539 x 7% = $1,787 Note: benchmark rate is 6.65%.
10.
Business use 1,200/4,950 = 25% Private use 100% - 25% = 75% (Rounded down) Operating costs Running costs (3,100 + 2,900) 6,000 Deemed Interest (13,266 x 6.65%) 882 Deemed Depreciation (13,266 x 25%) 3,316 $10,198 Running costs included ALL amounts incurred, irrespective of who pays for them. Value of Benefit = (10,198 x 75%) – 2,900 = $4,748
Solutions
100
11. Lexus – Statutory Formula Method (95,000 x 2/3 x 20%) – 1,400 = $ 11,266 Lexus – Operating Cost Method Private use 55% Operating Costs Running Costs 8,300 Interest (6.65% x 23,752) 1,579 Dep’n (22.5% x 23,752) 5,344 $15,223 Value = (55% x 15,223) – 1,400 = $ 6,972 Holden – Statutory Formula Method Annualised Kms 24,560 x 365/335 = 26,759km
(34,000 x 11% x 335/365) = $ 3,432 Holden – Operating Cost Method Private use 100% - 93% = 7%
Operating Costs Running Costs 7,900 Interest (6.65% x 34,000 x 335/365) 2,075 Dep’n (25% x 34,000 x 335/365) 7,801 17,776 Value = (7% x 17,776) = $ 1,244
Ford Utility No benefit - exempt vehicle
Type 1 Benefits Holden – Operating Cost Method 1,244 x 2.0647 = 2,568 Type 2 Benefits Lexus – Operating Cost Method 6,972 x 1.8692 = 13,032 15,600 x 46.5% Fringe Benefits Tax Payable $ 7,254.00
* The Lexus is a type 2 benefit as it was purchased pre GST.
Chapter 6: Fringe Benefits Tax
101
12. Statutory Formula
(26,000 x 2/3 x 20%) – 1,150 = $2,317 Operating Cost Business use 3,800/5,340 = 72%
Private use 100% - 71.16% = 28% (Rounded down)
Operating Costs Running costs (4,100 + 1,150) 5,250 Interest (6.65% x 9,380) 623 Depreciation (18.75% x 9,380) 1,758 7,631 Value = (28% x 7,631) – 1,150 $ 986 The operating cost method results in a lower taxable value ($986).
13. Statutory Formula
(37,000 x 11% x 243/365) = $2,709
Annual Kms = 18,500 x 365/243 = 27,788km
Operating Cost Business use 3,210/6,470 = 50% Private use 100% - 49.61% = 50%
Operating Costs Registration & Insurance (8/12 x 3,600) 2,400 Petrol 2,800 Servicing 620 Lease Payments ( 750 x 8 months ) 6,000 $11,820 Note- registration & insurance is matched to its period of service.
- tolls are not included in running costs for FBT. - repairs from a car crash are not included as running costs. - fines are not included.
Value = 11,820 x 50% = 5,910 The statutory formula method results in a lower taxable value ($2,709).
14. Value of Benefit = 40,000 x (6.65% - 3%) = $ 1,460
Solutions
102
15. Value of Benefit Primary Loan: 15,000 x6.65% = $ 997
16. Value of Benefit = 12,000 x (6.65% - 4%) x 121/365 = $ 105
As the benefit is ongoing, it cannot be classed as minor and infrequent.
17. Commodore – Statutory Formula
(32,000 x 11%) – 500 $3,020 Commodore – Operating Cost Business Use 22,000/26,000 = 85% Private Use 100% – 84.62% = 15% (Rounded down) Operating costs Running exps 2,000 Interest (6.65% x 32,000) 2,128 Dep’n (25% x 32,000) 8,000 12,128 Value = (15% x 12,128) – 500 = $1,319
Mobile Phone Exempt Loan Benefit 50,000 x (6.65% - 3%) x 150/365 = $750
Lunch Each benefit = $75, therefore minor and infrequent.
Weekend Trip $1,500
Falcon – statutory formula (2/3 x 24,000) x 7% $1,120
Golf Club Membership Outside of current FBT year (1 June 2011)
Falcon – operating cost Business Use 19,000/42,000 = 46% Private Use 100% – 46% = 54% (Rounded down) Operating costs Running exps 3,000 Interest (6.65% x 6,700) 445 Depn (22.5% x 6,700) 1,508 4,953 Value = (54% x 4,953) = $2,674
Chapter 6: Fringe Benefits Tax
103
( a ) Type 1 benefits Commodore – Operating Cost 1,319 Weekend Trip 1,500 2,819 x 2.0647 $5,820 Type 2 benefits Loan benefit 750 Falcon – Statutory Formula 1,120
1,870 x 1.8692 $3,495 9,315
x 46.5% FBT Payable $4,331.47
( b ) $4,331.47 - $4,000 = $ 331.47 payable to ATO
Solutions
104
18. Yacht Club Membership $3,200 Renault – Statutory Formula (60,000 x 7% x 274/365) – 2,800 = $ 352
Renault – Operating Costs
Running Costs (2,800 + 3,100) = 5,900
Deemed Depn (25% x 60,000 x 274/365) 11,260
Deemed Interest (6.65% x 60,000 x 274/365) 2,995
20,155 (20,155 x 70%) – 2,800 $11,308 Medical Bills $2,500 Train ticket $1,000 Loan 30,000 x 6.65% x 183/365 1,000 20,000 x 6.65% x 92/365 335 $1,335 Type 1 Benefits Renault 352 Yacht Club 3,200 Train ticket 1,000 4,552 x 2.0647 9,398 Type 2 Benefits Medical Bills 2,500 Loan Benefit 1,335
3,835 x 1.8692 7,168 16,566 x 46.5% FBT Payable $7,703.19
Chapter 6: Fringe Benefits Tax
105
19.
Gym Membership $2,200 Magna – Statutory Formula (2/3 x 31,700 x 11% x 365/365) – 3,100 = $0
School Fees $9,000 Concert Tickets $ 380 (note - the 4 tickets would represent 1 benefit)
Loan 40,000 x 6.65% x 92/365 670 35,000 x 6.65% x 58/365 369 $1,039 Type 1 Benefits Gym 2,200 Concert tickets 380 2,580 x 2.0647 5,326 Type 2 Benefits School Fees 9,000 Loan Benefit 1,039
10,039 x 1.8692 18,764 24,090 x 46.5% FBT Payable $11,201.85
Solutions
106
20. Hyundai
No valid logbook - So use the Statutory Formula method.
(38,000 x 0.20 x 162*/365) - 1,700 $1,673
* Days avail for priv use
= ( 31+ 30 + 31 + 31 +28 + 31 ) – 20
= 162
Loan
12,000 x (6.65% - 2%) x 365/365 $558
Toyota
No odometer readings kept; therefore we must use the operating cost method.
Running costs 3,600 + 1,800 5,400
Interest 10,000 x 6.65% 665
Depreciation 10,000 x 25% 2,500
8,565
(40% x 8,565)-1,800 $1,626
Movie Tickets
30 x 48 $1,440
Holiday $12,000
Car Parking
3 Benefits ( parking spaces )
Daily Rate
Average cost (15+19)/2 = $17/day
Market Value (4,000/228) = $17.54/day
Commercial Parking (330/20) = $16.50/day
Statutory Formula Method –Using the lowest daily rate.
Benefit = ( 3 x 228 x 16.50 x 3/3 ) = $11,286
Chapter 6: Fringe Benefits Tax
107
Type 1 Benefits
Hyundai 1,673
Toyota 1,626
Movie Tickets 1,440
Holiday 12,000
Car Parking 11,286
28,025 x 2.0647 57,863
Type 2 Benefits
Loan 558 x 1.8692 1,043
58,906
x 46.5%
FBT payable $27,391.29
Less Instalments paid 9,100.00
FBT Due $18,291.29