QUESTION 2 - FBT Calculation Question (15 Marks)

Jack Saunders is the state sales representative for Geliad Pty Ltd ("GPL"), a manufacturer of zinc bromide batteries based in Fairfield, Sydney. On 1 October 2020, GPL supplied Jack with a new car for work. The car cost$65,000to purchase and is garaged at work on weeknights and at Jack's home on weekends. GPL also provided Jack with a mobile phone holder valued at$75that allows him to use his phone while driving.

To date, GPL has paid$2,000 for maintenance and repairs of the car, $800 for its registration and $1,200for insurance. However, Jack haspaid $2,000 in fuel expenses.Jack also keeps all invoices, receipts and odometer readings.

On 1 December 2020, GPL loanedJack $10,000 at 2% interest pa. Jack used $6,000 to pay for repairs on his investment property. Jack used the remaining $4,000 on an all-expenses paid holiday to Hayman Islands with his partner. Jack claimed a tax deduction for the property repairs.

GPL also provided Jack with a zinc bromide battery which retails for$2,000 but has a wholesale price of $1500. Jack has connected the battery to his solar panels at home for energy storage.

By 30 March 2021, Jack had travelled a total of 12,700 kms in the car, with 3000 kms being for private use on weekends. The deemed depreciation in respect of the car for the 2021 FBT year is$7,372.

GPL is unsure how the above will be treated for taxation purposes and has come to you for advice.

Required:By reference to legislation and relevant case law (if any), calculate the total FBT liability for the car, mobile phone holder, loan and battery.

Note: All the above benefits are Type 1 benefits except the loan, which is a type 2 benefit.