(a) What is a fringe benefit (explain with reference to the key characteristics that make up a fringe benefit)?

(b) A company files its FBT returns on a quarterly basis. It owns a motor vehicle with a cost of $35,000 (GSTinclusive). For the quarter ended 31 December 2017, it provides the motor vehicle to an employee. The motor vehicle is available for the employees private use. During the quarter, the motor vehicle was used for emergency calls on five days and was taken away on a business trip for seven days. The company uses the cost method for calculating FBT on its motor vehicles. Calculate the taxable value of the motor vehicle for the quarter ended 31 December 2017.

(c) ABC Limited provides a loan of $5,000 to Marie, an employee. The loan is advanced on 1 April 2018, with a low interest rate of 3%. Marie does not make any loan repayment for the first six months. Calculate the taxable value of the loan for the quarter ended 30 June 2018. The prescribed rate of interest for the quarter ended 30 June 2018 is 5.77%.