Question 2

Part-A What is fringe benefit tax (FBT)? Explain at least five main salient features of the FBT?

Part -B Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Carron provides his employee (Rabbie) with the use of a Nissan Xtrail car 196 days during the FBT year. During the period, the car travelled 15,000 km. Carron purchased the car last year for $45,000. Rabbie contributed $1,500 towards the cost of running the car and has provided Carron with relevant documentation.

Both part is holding marks

Each q