Your client A1 Services Ply Ltd has 10 employees and has approached you for advice on the following transactions: a) Payment to an employee for an estimated cost of electricity used in his home workshop. The total amount paid during the Fringe Benefits Tax (FBT) year is $450. b) Loan to an employee at 1% interest. The employee used the loan as a deposit to buy a holiday home with the intention of renting it out. A loan of $45,000 was provided on the 1st of April 2023. c) Payment of an employee's medical bills for a recent heart scare. The total amount paid during the FBT year is $3,500. d) $150 gift card to all employees as a Christmas present e) Payment of Christmas party for all employees to attend, total cost $2,500 Additional Information Refresh the assessment to view updated details after you submit an attempt. I REQUIRED: Advise A1 Services Pty Ltd which of the above items will be subject to Fringe Benefits Tax and determine the taxable value of the benefit provided. Provide justification for your comments using legislation and case law.
Your client A1 Services Ply Ltd has 10 employees and has approached you for advice on the following transactions: a) Payment to an employee for an estimated cost of electricity used in his home workshop. The total amount paid during the Fringe Benefits Tax (FBT) year is $450. b) Loan to an employee at 1% interest. The employee used the loan as a deposit to buy a holiday home with the intention of renting it out. A loan of $45,000 was provided on the 1st of April 2023. c) Payment of an employee's medical bills for a recent heart scare. The total amount paid during the FBT year is $3,500. d) $150 gift card to all employees as a Christmas present e) Payment of Christmas party for all employees to attend, total cost $2,500 Additional Information Refresh the assessment to view updated details after you submit an attempt. I REQUIRED: Advise A1 Services Pty Ltd which of the above items will be subject to Fringe Benefits Tax and determine the taxable value of the benefit provided. Provide justification for your comments using legislation and case law.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 4MC: A car dealership sells a car to a customer for $35,000. The customer makes a 10% down payment, and...
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Transcribed Image Text:Your client A1 Services Ply Ltd has 10 employees and has approached you for advice on the following transactions:
a) Payment to an employee for an estimated cost of electricity used in his home workshop. The total amount paid during
the Fringe Benefits Tax (FBT) year is $450.
b) Loan to an employee at 1% interest. The employee used the loan as a deposit to buy a holiday home with the
intention of renting it out.
A loan of $45,000 was provided on the 1st of April 2023.
c) Payment of an employee's medical bills for a recent heart scare. The total amount paid during the FBT year is $3,500.
d) $150 gift card to all employees as a Christmas present
e) Payment of Christmas party for all employees to attend, total cost $2,500
Additional Information
Refresh the assessment to view updated details after you submit an attempt.
I
REQUIRED:
Advise A1 Services Pty Ltd which of the above items will be subject to Fringe Benefits Tax and determine the taxable
value of the benefit provided. Provide justification for your comments using legislation and case law.
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