QUESTION 1

1. A Fringe benefit may not arise if:

   		Benefits are provided by a third party
   		Benefits are provided by a subsidiary company of the employer
   		Benefits are provided by the holding company of the employer
   		Benefits are provided by the spouse of the employer
   		None of the above

   QUESTION 2

2. Which of the following would not be classified as an associate for the purposes of Fringe Benefits Tax?

   		( a ) The recipient's spouse.
   		( b ) A child of the recipient.
   		( c ) A company where all of the shares were held by the recipient.
   		( d ) A parent of the recipient.
   		( e ) None of the above.

   QUESTION 3

3. Which of the following is a fringe benefit?

   		( a ) Payment of an employees telephone bill.
   		( b ) A salary payment to an employee.
   		( c ) Payment of an allowance under an industrial award.
   		( d ) Compensation for loss suffered.
   		( e ) None of the above.

   QUESTION 4

4. What is the rate of tax for fringe benefits in the 2019/20 FBT year?

   		50%
   		49%
   		45%
   		47%
   		None of the above

   QUESTION 5

5. A taxpayer uses a car provided by their employer under a contract entered into on 30 April 2019 for the entire FBT year. During 2019/20, the car travelled 32,000 kilometres in total including 16,000 business kilometres. What is the statutory fraction that will apply?

   		( a ) 0.07
   		( b ) 0.11
   		( c ) 0.20
   		( d ) 0.26
   		( e ) None of the above.

   QUESTION 6

6. What day of the year does the FBT year commence on?

   		November 01
   		July 01
   		March 01
   		April 01
   		None of the above

   QUESTION 7

7. Which of the following is not included in the definition of 'employee' for the purposes of Fringe Benefits Tax?

   		A potential employee
   		A current employee
   		A past employee
   		A future employee
   		None of the above

   QUESTION 8

8. Which of the following non-cash benefits would likely NOT attract FBT?

   		Benefits provided to an employees spouse
   		Benefits provided to a shareholders spouse
   		Benefits provided to a supplier
   		Benefits provided to a contractor
   		All of the above would likely attract FBT

   QUESTION 9

9. What is the rate of depreciation for a car used for determining the taxable value of a car fringe benefit using the operating cost method? The car has been held since 2007.

   		( a ) 20%
   		( b ) 25%
   		( c ) 18.75%
   		( d ) 22.5%
   		( e ) None of the above.

   QUESTION 10

10. An employer gives an employee trading stock which usually retails for $12,000. The lowest value that the stock has been available to the general public is $10,000. What is the taxable value of the residual in-house benefit?

    		( a ) $6,500
    		( b ) $12,000
    		( c ) $10,000
    		( d ) $ 7,500
    		( e ) None of the above