Question

NOTE: NEED PLAGIARISM FREE ANSWER

Perisher Pty Ltd (Perisher) is a Ski equipment manufacturer that operates around Mt Hotham in Victoria. On 1 May 2019, Perisher provided Nikita (one of its employees) with a car as Nikita does a lot of travelling for work purposes. However, Nikita’s usage of the car is not restricted to work only. Perisher purchased the car on that date for $44,000 (including GST) plus $2,000 (including GST) dealer delivery charges. For the period of 1 May 2019 to 31 March 2020, Nikita travelled 12,000 kilometers in the car and incurred expenses of $770 on minor repairs that have been reimbursed by Perisher. The car was not used for 10 days when Nikita was interstate and was parked at the airport and for another five days when the car was scheduled for annual repairs.

Calculate the Fringe Benefits Tax Liability for Perisher, please have a look at the matrix below on how to answer the question.

Answer in around 1000 words (acceptable to be 10% above or below this word limit).

Weighting 1% 1% 1 % QUESTION 1: Calculate the FBT liability for Perisher Pty Ltd Identification of material facts (issues) regarding fringe benefits provided to Nikita Identification and analysis of legal issues / legal question and relevant taxation law in regards to fringe benefits (e.g. FBTAA 1986). Thorough application of tax law (e.g. ITAA 1936 and ITAA 1997) to material facts in Perisher's case. Accurate conclusion of the FBT calculation. Correct information and taxation law have been used and properly cited. A detailed analysis has been performed. QUESTION 1 TOTAL MARKS: 5 % 2% 10%

Answer 1

Solution:- 07 the page The baxable value of that fringe bentit, aggregate of the taxable values of these benefits, as the case may be, in relation to the year of tax, is amount calculated in with the formulai + fringe that accordance value of the on car fringe Benefits NOTES I. Base cao = purchase cost + Delivery = $44000 + $2000 charges - $46000 2. No of days during that year of ta) which the where provided by the provider - 1st may 2019 to 31st March 2020=304 3. Rate on the baxable value given for the fringe benfit is = 10% the bariable value formula for calculation of the Taxable value Boge 0.2 Base value of the car No of days during of gear 어 tar which the car fringe Benefits the where provided br provides - ۱ * that on of 아 days in that po year of P tal 20.2* $ 46000 (Note 1)* 304 Cuote 27/365 Expenses incurred b He employee

page © 7662.24 -770 = 6892:24 * fringe benifit tax liability = Taxable value = 6892.24 * 10% = 689 rate of tax