Fringe Benefit Tax (FBT Question 1 (a) What were the two main reasons for the introduction of FBT in New Zealand? (b) Gumdrops Ltd provides a motor vehicle for private use to one of its employees at the start of Year 1. The motor vehicle cost $50,000 (GST exclusive). Gumdrops Ltd is registered as an annual filer. The Motor vehicle was not available for the employees use for 10 days during the year when it was being serviced or repaired. During the Year 1 the employee contributed $1,000 towards the running cost of the vehicle Required: Calculate the taxable value of the motor vehicle benefit using the "cost price" option for Year 1. Show all workings. Styles Gumdrops Ltd, a GST-registered person, provides the following benefits to its employees in the quarter to 31 December 2019: A motor vehicle which cost $30,000 (GST-inclusive) is made available for Tom's private use. Just before Christmas, the car was not available for Tom's use for two days as it was being repaired and serviced. An interest-free loan of $30,000 to Harry. Contributions of $1,500 made to Mary to help subsidise her holiday trip to Paris What is the taxable value of fringe benefits and the GST on fringe benefits provided by Gumdrops Ltd for the quarter to 31 December 2019? Assume the company opts to use the cost price method to calculate the taxable value for motor vehicles. What is the GST on the fringe benefits provided by Gumdrops Ltd