FBT(Fringe benefit tax ) questionnaire Brown Engineers Limited Employee number Employees Gross Remuneration 1 Joe Brown 75000
Question:
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)
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill