Jason Santos, aged 46 years, started a bottled drink retail business two years ago as an Australian private company, Cool Bottle Pty Ltd. Jason is a managing director of Cool Bottle Pty Ltd. Jason emailed you regarding the following issues related to his company. Cool Bottle Pty Ltd provided some benefits to various stakeholders. As this is the first time Jason has done this, he needs some guidance to determine fringe benefits and calculate the FBT. The following information was extracted from Jasons email; all the information relates to the FBT year ending 31 March 2022. Cool Bottle Pty Ltd is registered for GST. (a) A briefcase ($340 including GST) for a potential employee as an enticement to join the organisation. (b) A holiday package costing $16,500 (including GST) to a customer as part of a competition. (c) On 1 April 2021, Cool Bottle Pty Ltd purchased a new company car at a cost of $54,000 including GST. The car was registered and insured on that date and was to be used exclusively by Jason. The total distance travelled by the car in 12 months was 32,000 km, 9,000 km of which was for business purposes. The car was garaged at Jasons residence at all times. (d) Total running costs (GST inclusive) related to the cars use were $7,200 and Jason contributed $2,100 towards the cost of the petrol and oil for the car. Jason wishes to opt for the Small Business Entity (SBE) option, but he is unsure whether this is a good choice for him and what benefits will become available when choosing the SBE. Cool Bottle Pty Ltds account details are as follows. Cool Bottle Pty Ltd is registered for GST. (e) The business turnover for the financial year ending 30 June 2022 was $1,780,000, including GST. (f) The company purchased a delivery truck for $495,000 (including GST) on 31 May 2021, which was ready to use on 1 August 2021. The truck was not operational until 1 August 2021. (g) The opening stock value was $189,000 on 1 July 2021 and the closing stock value was $192,000 on 30 June 2022. (h) The company paid an annual insurance premium of $8,000 starting from 1 April 2022. Cool Bottle Pty Ltd uses an accrual method to account for his income and expenses.

With reference to the relevant legal principles, advise Jason Santos on the following issues in your draft business letter of advice: 1.) Which of the items listed at (a)(d) above do not fall within the meaning of fringe benefit? 2.) For any items (a)(d) that constitute a fringe benefit, calculate the taxable value and the minimum FBT payable. 3.) Is Jasons business eligible to be a SBE? 4.) What concessions are available for Cool Bottle Pty Ltd based on the account details listed above at (e)(h)? 5.) What tax concessions are available regarding income tax and capital gains tax for an SBE?