QUESTION 3 (10 MARKS) Discuss the Fringe Benefits Tax (FBT) implications of the following cases (a)...

QUESTION 3

Discuss the Fringe Benefits Tax (FBT) implications of the following cases (a) – (e): (Note - No calculations are needed. Only answer whether the employer is liable for FBT or not and why or why not)

(a) An employer provides a Christmas lunch at a local restaurant, costing $1,000, for 10 of its key employees.

(b) A sporting club, which pays its honorary treasurer an honorarium of $5,000 per year, providing a car to him. The car is used 90% for club business. The treasurer has a full-time job at the local hospital.

(c) An employer gives each of its 15 staff a leg ham each valued at $60 for Christmas.

(d) An employer allows its staff to take home their laptop computers. It is estimated that only half the work done at home is business related.

(e) A company director, not in receipt of any remuneration from the company, uses the company’s two-tonne truck while undertaking renovations to his own home.

Expert Solution

jeff jeffy answered 2 years ago

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