Question 1

Harry borrowed $450,000 on 1 April 2019 at an interest rate of 0% from his employer, XYZ Pty Limited. The loan was to be for 10 years. The loan lasted the whole FBT year and was for private purposes.

Advise XYZ Pty Limited on the Fringe Benefit Tax implications (showing all necessary calculations) of the above.

Question 2

Joice was employed by PWC, a large accounting firm, as a graduate accountant. PWC provided him with the following:

• $15,000 Entertainment Allowance.

Required:

Advise PWC of the Fringe Benefits Tax (showing all necessary calculations) on the above for the year ended 31 March 2019.