Question 1 FBT Calculations (10 Marks)

Bella is a senior manager for Twilight Pty Ltd, (TPL) a large importer and distributor of exclusive designer clothing. Her work sometimes requires her to drive around greater Sydney area to secure new retailers and deal with various issues. Bella lives in Penrith, but TPL is located in Five Dock.

On 1 May 2021, TPL leased a new car costing $90,000 (GST inclusive). The car has a fuel consumption that does not exceed 7 litres per 100 kilometres. Total lease payments in the first year are $5,200.

The car was garaged at Bellas house most nights as there was no covered and secure parking space at TPL in Five Dock.

The particulars for the year regarding the car and for which invoices are retained, including a logbook, include:

Stamp duty $250

Registration & Insurance $1,100

Service and Maintenance $1,200

Petrol and oil $5,500

Total kilometres travelled (as per log book) 37,000 kms

Home to work travel 24,000 kms

Bellas contribution for petrol and oil $5,500

Required: Advise about the fringe benefits tax liability for the current FBT tax year.

Your answer should show relevant calculations and be clearly supported by

references to relevant legislation, case law or tax rulings.