FBT(Fringe benefit tax) questionnaire Brown Engineers Limited

Employee number Employees Gross Remuneration

1 Joe Brown 75000

2 Jill Brown 75000

3 Jack Grey 55000

4 John Doe 55000

Vehicles Cost BV 31/3/20 Days available for private use Purchased

Dodge Ram Truck 125000 62500 incl GST Joe's Car 365 1/04/2000

Holden Ute 56000 28000 incl GST Jack's car 104 1/04/2000

Loans

John crashed his car in 2018 into a power pole. Police fines and reparation costs were $5,500

The Brown's didn't think he deserved a new work vehicle, but gave him a loan to pay his fines.

John still owed the Brown's $4,000 at 31 March 2020. The Brown's don't charge him interest.

Jack is learning to weld. He wanted to purchase a tig welder, so the Browns gave him an advance on his wages of $1,000. They deduct $50 per week of his wages. Balance owing at 31 March 2020 was $850

Christmas

In December the Brown's took the staff out for Christmas dinner. Total cost was $450

They decided that since Jack was such a great lad, they gave him a season pass to the Crusaders home games which cost $220

Work equipment

Jack and John both have work phones. Each phone cost $1,100 including GST

Insurance

As part of their employment package, Jack and John both have health insurance

Their annual premiums are as follows:

Jack 625

John 730

Workers accommodation

Jack and John live together in the workers house on site.

The Brown's previously rented the house to the neighbour for $8,100 per year.

Required:

Calculate the annual FBT liability for the Brown Engineers Limited for the year ended 31 March 2020. (show the working)