Air Co Ltd ('Airco') is a New Zealand company conducting an international airline business. Airco has branch offices in Nadi and Suva.

Raj is a Fiji citizen and resident of Fiji.

Raj is employed by Airco as the country manager Fiji with oversight of the company's two Fiji offices.

Raj's employment agreement with Airco provides as follows.
- Annual salary: $85,000.
- Housing allowance: $500 monthly.
- Free schooling for up to three children at International School Nadi ('ISN').
- Free private travel for Raj and immediate family on all Airco flights.
- Annual holiday leave: three weeks.
- Participation in Airco's employee share scheme for senior managers.
- Standard employer contribution to FNPF.

For the year 2021 Raj has two children enrolled with ISN. Airco pays ISN directly school fees of $22,000.

In February, Raj takes his annual leave. Raj and his immediate family take a return Airco flight to NZ to visit some relatives. The family's tickets are valued in total at $5,500.

Airco's employee share scheme provides that managers may annually subscribe for up to 2,000 shares in Airco at an issue price of $4.00. It is a condition of the scheme that the first 500 shares in any annual subscription must be retained (i.e. cannot be sold) for a period of 3 years.
On September 1, Raj subscribes for his full entitlement of 2,000 shares. At this time shares of Airco are trading at $16.00.
Raj in part funds the subscription price with a loan from his uncle ('Uncle'). Interest on the loan for 2021 is $500.

Aside from his job with Airco, Raj has several further sources of income.
- interest on term deposit with Westpac Suva: $2,000 - interest from Sco bonds: $4,000 - income as beneficiary of Family Trust: $15,000 Sco is a Samoa company. Interest paid by a Samoa company to a non-resident bondholder is subject to a 10% withholding tax under the Samoa ITA. Raj in fact received a cheque of $3,600 from Sco. There is no DTA between Samoa and Fiji.

Family Trust is a discretionary trust established by Raj's grandfather with all descendants of grandfather being beneficiaries. In 2021 the trustees allocate Raj $15,000 composed of undistributed income of the trust for 2020 $10,000 and trust income (net) of the current year $5,000.

Additional information - Raj makes regular contributions equal to 1/10th of his gross salary to his church throughout the year.
- On world health day Raj makes a cash donation of $1,000 to the Fiji Red Cross Society.
- Raj has one child born out of wedlock. (It happened while Raj was at USP and still single.) Every month Raj pays $500 maintenance (per a Family Court order) to the mother of the child.

Required:
First: identify what benefits received by Raj will be subject to FBT.

Second: identify what receipts or benefits received by Raj will constitute exempt income.

Third: identify what receipts or benefits received by Raj will constitute 'employment income' as defined in s.2.

Fourth: Calculate Raj's chargeable income and Income Tax for the year 2021.
Explain your calculation and include reference to any relevant sections.