Question
Lou is an employee at a large real estate agency and is paid a salary and commission on sales. He has negotiated the following benefits
Lou is an employee at a large real estate agency and is paid a salary and commission on sales. He has negotiated the following benefits with his employer: Provision of a car for work and personal use. Lou was provided with the car for the period 1 April 20120 to 31 March 2021. The leased car value was $22,000 at 1 April 2020, and the car had only been leased for a year at that time. Lou is required to pay for any petrol costs which he has determined to be $1,300 for the period 1 April 2020 to 31 March 2021. Provision of the latest model smart phone on 1 April each year as Lou is usually "on the street" and needs a good phone to do his job. Lou estimates that he uses the phone 70% for work purposes. The phone was purchased new on 1 April 2020 for $1,100 (including GST). In addition he was provided with 10 gift vouchers worth $50 each for use at the local supermarket as a Christmas gift in December 2020. Advise Lou's employer as to the FBT consequences (including calculation of any FBT liability) arising out of the above information. (8 marks) Would your advice change if the vouchers were used to purchase gifts for clients and new owners who finalized sales in December? (2 marks) In the answer box below, write the letter and your answer. e.g. a. Your answer
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