Gordon accepts an offer of employment made by QP Pty Ltd to be their new associate director. On 1 April 2019, QP Pty Ltd made Gordon an interest free loan of $500,000 to last for 3 years. Gordon used the loan money from his employer to pay out a previous loan on his home from XYZ Bank that was costing him 7% per annum. QP Pty Ltd is not entitled to claim any input tax credit for GST purposes. Required: Advise QP Pty Ltd of the Fringe Benefits Tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2020.
Gordon accepts an offer of employment made by QP Pty Ltd to be their new associate director. On 1 April 2019, QP Pty Ltd made Gordon an interest free loan of $500,000 to last for 3 years. Gordon used the loan money from his employer to pay out a previous loan on his home from XYZ Bank that was costing him 7% per annum. QP Pty Ltd is not entitled to claim any input tax credit for GST purposes. Required: Advise QP Pty Ltd of the Fringe Benefits Tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Gordon accepts an offer of employment made by QP Pty Ltd to be their new associate
director.
On 1 April 2019, QP Pty Ltd made Gordon an interest free loan of $500,000 to last for 3
years.
Gordon used the loan money from his employer to pay out a previous loan on his home
from XYZ Bank that was costing him 7% per annum.
QP Pty Ltd is not entitled to claim any input tax credit for GST purposes.
Required:
Advise QP Pty Ltd of the Fringe Benefits Tax payable, if any, (rounded to the nearest
dollar) for the FBT year ended 31 March 2020.
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