Jumping with joy, you were the first one which Jackie shared her good news. She was just promoted as the Production Supervisor in her company. You then tell her that she is now subject to Fringe Benefit Tax. She just shrugs off the idea given the level of ecstasy she is feeling.   Is it right that she needs not to worry on her exposure on said tax? No, as it might be an additional withholding on her compensation benefits. Yes, as she deserves to celebrate for the meantime. Yes, as the economic taxpayer of said tax is the employer. No, as she will be paying higher tax rates on benefits covered by said tax. 17

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Jumping with joy, you were the first one which Jackie shared her good news. She was just promoted as the Production Supervisor in her company. You then tell her that she is now subject to Fringe Benefit Tax. She just shrugs off the idea given the level of ecstasy she is feeling.
 
Is it right that she needs not to worry on her exposure on said tax?
No, as it might be an additional withholding on her compensation benefits.
Yes, as she deserves to celebrate for the meantime.
Yes, as the economic taxpayer of said tax is the employer.
No, as she will be paying higher tax rates on benefits covered by said tax.
17
 
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