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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

6

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.
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.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Tax loss carryovers
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education