Question
PART A (4 marks) Required : Advise E Pty Ltd regarding the Fringe Benefits Tax implications of the facts below. You are not requiredto calculate
PART A (4 marks)
Required: Advise E Pty Ltd regarding the Fringe Benefits Tax implications of the facts below. You are not requiredto calculate the actual FBT liability.
E Pty Ltd is an engineering firm that employs Naomi, who is entitled to a salary of $150,000. She reaches a salary sacrifice arrangement with E Pty Ltd where, in exchange for giving up part of her salary, E Pty Ltd will pay for:
- A laptop (that she can keep) that she intends to mostly use for work.
- Extra superannuation contributions.
- The interest expenses on her investment property loan.
PART B (4 marks)
Required: Advise Newtech as to the GST implications for the following transactions:
An IT development firm, Newtech, which is registered for GST, undertakes the following transactions for the GST period (where GST applies, prices are GST inclusive):
- Purchases of fresh fruit from a major supermarket for the staff room: $1000.
- Purchase of a new laptop from a major department store: $2000.
- Payment of staff salaries: $300,000.
- Payment of water utilities bill: $500.
- Sales of services: $600,000.
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