GoodMates Pty Ltd loaned one of its staff, Munir, the amount of $5,000 (interest free) for one month. Due to personal life issues and financial hardship that Munir was suffering, it turned out that demanding the loan will endanger his health and will cause him not to be able to provide basic needs for his family. At the discretion of the board of directors, this loan was waived on compassionate reasons and Munir was informed.

Is the company required to pay any fringe benefit tax? Kindly use the template below and discuss in detail.

Facts:

Rules and or cases:

Application:

Conclusion:

(7 marks. Word limit: Minimum of 120 words. Maximum of 150 words)

2)

GoodMates Pty Ltd loaned one of its staff, Munir, the amount of $5,000 (interest free) for one month. Due to personal life issues and financial hardship that Munir was suffering, it turned out that demanding the loan will endanger his health and will cause him not to be able to provide basic needs for his family. At the discretion of the board of directors, this loan was waived on compassionate reasons and Munir was informed.

Is the company required to pay any fringe benefit tax? Kindly use the template below and discuss in detail.

Facts:

Rules and or cases:

Application:

Conclusion:

(7 marks. Word limit: Minimum of 120 words. Maximum of 150 words)

Calculate the tax liability for Andre, a single tax resident, receiving $1,000 dividend (80% franked) from a large company, called Margin Pty Ltd, which uses imputation tax system and 30% corporate tax rate. Other income and expenses of Andre are as below:

• Employment income $ 63,013 (excluding 16,467 PAYG withholding)
• Allowable Deduction of $500
• Consider Medicare Levy, Medicare Levy Surcharge (if applicable), and relevant offsets.

(No law sections or cases are required to be included in your answer. Please use a table to answer this question, no decimals are required. Tax year 2019/2020).