Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Carron provides his employee (Rabbie) with the use of a Nissan Xtrail car 196 days during the FBT year. During the period, the car travelled 15,000 km. Carron purchased the car last year for $45,000. Rabbie contributed $1,500 towards the cost of running the car and has provided Carron with relevant documentation.

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.