In respect of each benefit you are required to specify the category and the applicable division of the Fringe Benefits Tax Assessment Act 1986 (FBTAA) provide section references of the FBTAA for each part of your calculation and indicate whether the benefit is a Type 1 or Type 2 benefit and state the reason Reasons for any exclusions must also be provided Your working papers must be typed using Excel or Word The FBT return may be handwritten An Excel worksheet has been provided to help you to set out your assignment Worlds Best Gifts Pty Ltd (WBG) is a company resident in Australia Its business is the sale of unusual and original giftware In addition to providing giftware to boutique gift stores in Perth it also has salespeople who drive to rural areas to sell its giftware to shops in country areas Its turnover is above $10 million It provides the following to its staff in the FBT year ended 31 st March 2020 Michael a salesman who mainly serviced shops in Perth A BMW sedan which was leased at a cost of $800 per month It cost $95,000 His work related use was 65 based on his logbook Fuel totalled $8,100, insurance and registration were $2,700 (paid on 1 April 2019) Michael did some minor damage to the car and paid $1,200 to have it repaired He took all of November 2019 and December 2019 on a combination of Annual and Long Service Leave He went overseas and left the car at the employers premises A diamond bracelet with a retail value of $10,800 he gave as a gift to his wife for her 50 th birthday WBG was able to buy it from another business at a reduced price of $7,500 Michael was required to pay $5,000 Christmas and birthday gifts, he bought for family and friends He paid $6,800 for gifts which WBG would have sold to its customers for $10,000 In turn, the customers would have sold them at retail for $15,000 He had salary sacrificed this amount Membership of the Salespeople Association It cost Michael $400 all of which was re imbursed by WBG Notes The company does not qualify as a SBE The company has paid GST where it is liable to do so and all amounts shown are GST inclusive REQUIRED Complete working papers showing how you have calculated the taxable value of each benefit provided Include in your working papers references to the FBT legislation for each benefit provided and provide reasons and explanations for any items which you exclude from the calculations Calculate the FBT payable by Worlds Best Gifts Pty Ltd

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In respect of each benefit you are required to: specify the category and the applicable division of the Fringe Benefits Tax Assessment Act 1986 (FBTAA);

In respect of each benefit you are required to:

specify the category and the applicable division of the Fringe Benefits Tax Assessment Act 1986 (FBTAA);
provide section references of the FBTAA for each part of your calculation; and
indicate whether the benefit is a Type 1 or Type 2 benefit and state the reason.

Reasons for any exclusions must also be provided.

Your working papers must be typed using Excel or Word. The FBT return may be handwritten. An Excel worksheet has been provided to help you to set out your assignment.

Worlds Best Gifts Pty Ltd (WBG) is a company resident in Australia. Its business is the sale of unusual and original giftware. In addition to providing giftware to boutique gift stores in Perth it also has salespeople who drive to rural areas to sell its giftware to shops in country areas. Its turnover is above $10 million.

It provides the following to its staff in the FBT year ended 31^st March 2020.

Michael a salesman who mainly serviced shops in Perth.

A BMW sedan which was leased at a cost of $800 per month. It cost $95,000. His work-related use was 65% based on his logbook. Fuel totalled $8,100, insurance and registration were $2,700 (paid on 1 April 2019). Michael did some minor damage to the car and paid $1,200 to have it repaired. He took all of November 2019 and December 2019 on a combination of Annual and Long Service Leave. He went overseas and left the car at the employers premises.
A diamond bracelet with a retail value of $10,800 he gave as a gift to his wife for her 50^th birthday. WBG was able to buy it from another business at a reduced price of $7,500. Michael was required to pay $5,000.
Christmas and birthday gifts, he bought for family and friends. He paid $6,800 for gifts which WBG would have sold to its customers for $10,000. In turn, the customers would have sold them at retail for $15,000. He had salary sacrificed this amount.

Membership of the Salespeople Association. It cost Michael $400 all of which was re-imbursed by WBG.

Notes:

The company does not qualify as a SBE.

The company has paid GST where it is liable to do so and all amounts shown are GST-inclusive.

REQUIRED:

Complete working papers showing how you have calculated the taxable value of each benefit provided. Include in your working papers references to the FBT legislation for each benefit provided and provide reasons and explanations for any items which you exclude from the calculations. Calculate the FBT payable by Worlds Best Gifts Pty Ltd.