HI6028 Assessment Question On Taxation Theory, Practice And Law

Question 5 (11 marks)

1. Calculate the taxable value of the fringe benefit using the statutory formula in the following case context:

Nancy provided her employee (William) with the use of a Toyota Pajero car 216 days during the Fringe Benefit Tax year. During the period, the car travelled 12,000 km. Nancy purchased the car last year for $65,000. William contributed $2,000 towards the cost of running the car and has provided Nancy with relevant documentation.(6 marks) (Maximum 250 words)

2. Rory is a staff of a furniture manufacture company.  His employer allowed him to purchase an office table for $ 1,200. The table would ordinarily be sold to customers for $1,800. Calculate the taxable value of the fringe benefit. (5 Marks)

(Maximum 200 words)