For each of the following events, determine whether they constitute fringe benefits and

calculate the taxable value and grossed-up taxable value of any such fringe benefits.

1. During the 2022/2023 FBT year Sheree used her own car, a Saab, for business purposes. 4,000 km related to business travel. Dani was reimbursed at the rate of 65 cents per km. (2 marks)

1. What would be the position if Sheree received a travel allowance of $2,000? (2 marks)

1. Dani Sing is the Managing Director of the company Web D Pty Limited (Web). As a reward for the outstanding increase in profits, the Board of Directors resolved to upgrade Dani's car from a Holden Sedan to Ford SUV. The Ford SUV was acquired on 1 November 2022 at a cost of $53,000. Dani has maintained a logbook showing 80% business use. The car travelled 16,000km to 31 March 2023. Total running and lease costs were $9,000 to 31/3/23 and all costs are inclusive of GST.

Dani contributed $1000 toward petrol costs during the period ending 31/3/23you're your answer, determine which method of calculation produces the better result for the company. (5 marks)

1. Dani also has a low interest loan from Web. An amount of $500,000 was borrowed from Web at an interest rate of 3% on 1 July 2023. Dani has used the funds as follows:

• $150,000 to purchase shares in Commonwealth Bankof Australia ;
• $250,000 to purchase an investment unit with her partner in equal shares - the unit was leased from the date of purchase.
• $100,000 to pay off the loan on her private home that she shares with her partner.

(3 marks)