PART A

Required: Advise BulldExperts regarding the Fringe Benefits Tax implications of the facts below (Including the type of Fringe Benefit where applicable). You are NOT required to calculate the actual FBT Hability.

BuildExperts is an engineering firm that employs an engineer, Scott who is on an annual salary of $150,000. Scott arranges a salary sacrifice agreement with BuildExperts where, in exchange for giving up part of his salary, BuildExperts will:

• Contribute an extra $5,000 in superannuation contributions to Scott's superannuation account (on top of the mandatory ones Scott is already entitled to); and
• Reimburse Scott for council rates that he paid on his investment property Scott had in a previous tax year borrowed $10,000 from the firm (Buildexperts), the firm will agree to cancel the debt

PART B

Required: Assuming that where GST applies (1) prices are GST Inclusive and (11) unless told otherwise, a valid tax invoice has been supplied, advise Car Servicing as to the GST implications of the following transactions:

Car Servicing Pty Ltd is a company that runs a car servicing business. It is registered for GST and undertakes the following transactions for the tax year:

• Purchases of plumbing services for staff bathroom to fix leaking tap: $1,100. Payment of medical fees (to a medical clinic) for injured staff member: $2,000.
• Purchase of new equipment used for car servicing: $88,000.
• One of its numerous servicing centres had been knocked down, and Car Servicing built a new residential house on the land, which it sold for $900,000.
• Sales of car services to customers: $4,000,000.