Fringe benefit tax - advice abc of its fbt consequences

Assignment Help Taxation
Reference no: EM13878095 , Length:

Scenario-1: Topic: Fringe Benefit Tax

Alan is an employee at ABC Pty Ltd (ABC). He has negotiated the following remuneration package with ABC:

• Salary of $300,000;

• Payment of Alan's mobile phone bill ($220 per month, including GST). Alan is under a two-year contract whereby he is required to pay a fixed sum each month for unlimited usage of his phone. Alan uses the phone for work-related purposes only;

• Payment of Alan's children's school fees ($20,000 per year). The school fees are GST free.

ABC also provided Alan with the latest mobile phone handset, which cost $2,000 (including GST).

At the end of the year ABC hosted a dinner at a local Thai restaurant for all 20 employees and their partners. The total cost of the dinner was $6,600 including GST.


(a) Analyze and then advice ABC of its FBT consequences arising out of the above information, including calculation of any FBT liability, for the year ending 31 March 2015. Assume that ABC would be entitled to input tax credits in relation to any GST-inclusive acquisitions.

(b) How would your answer to (a) differ if ABC only had 5 employees?

Scenario-2: Topic: Residence and Sources

The Big Bang Company was set up by Ed, an Australian resident. It is incorporated in Singapore and has two directors who are resident in Singapore and who hold board meetings in Singapore. Each director has two shares in the Big Bang Company, which they hold on trust for Ed. The Big Bang Company owns real property, all of which is outside Australia, and makes its pro?ts from commercial property leases on a large scale. Ed does not attend the board meetings in Singapore; however, the constitution of the Big Bang Company provides that the decisions of the directors are only effective if Ed concurs with them. The directors carry on all operational activities, such as collecting rent, paying commission, ?nding tenants, making minor repairs and maintaining the buildings.


Is there any possible scenario in which the Big Bang Company could be considered a resident of Australia for tax purposes? Refer to Ruling TR 2004/15, justify your answer considering all the possibilities applicable in this scenario to become a resident of Australia. A detail analysis of each possibility is required.

Verified Expert

Reference no: EM13878095

What is rick filing status for 2012

Rick, whose wife died in December 2011, filed a joint tax return for 2011. He did not remarry, but has continued to maintain his home in which his two dependent children liv

Compute mrs yanks federal income tax

Compute Mrs. Yank's federal income tax and the amount due with her Form 1040 or the refund she should receive. Mrs. Yank works as a medical technician in a Chicago hospital.

Calculate henrys deduction for car expenses

Calculate Henry's deduction for car expenses under each of the four methods in Div 28 of ITAA 1997. Use the "cents per kilometer" amounts for the 2009-10 year in answering thi

Calculate rafaels taxable income and tax payable

Calculate Robs income tax payable or refundable - Calculate Rafaels taxable income and tax payable - Calculate the Medicare levy and Medicare levy surcharge payable for the ye

Accidental death and dismemberment coverage

Enhancing the group benefits plan offered to employees in two months. In addition to the group term life insurance coverage currently offered, employees will then have acci

Determine how to minimize individual income tax

Conduct basic tax research and tax planning on individual federal taxation issues and determine how to minimize individual income tax within specific risk and legal parameters

What are the nature and amount of any carryovers

What are the nature and amount of any carryovers to 2013? What is the taxable amount due after using the tax credit? Calculate the net capital gain (loss) for 2012. How is thi

Company provide ryan with a mobile phone

He has the use of a company house which has an annual value of £10,750 which cost the company £250,000. Ryan makes no contribution towards the cost of the house or its runni


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd