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 andwhy or why not)(a) An employer provides a Christmas lunch at a local restaurant, costing $1,000, for 10 of its keyemployees. (b) A sporting club, which pays its honorary treasurer an honorarium of $5,000 per year, providinga car to him. The car is used 90% for club business. The treasurer has a full-time job at the localhospital. ( (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 halfthe work done at home is business related. (e) A company director, not in receipt of any remuneration from the company, uses the company’stwo-tonne truck while undertaking renovations to his own home
Discuss the
(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
Step by step
Solved in 2 steps
