QUESTION 3 (10 MARKS)

Discuss the Fringe Benefits Tax (FBT) implications of the following cases (a) (e): (Note - No calculations are needed. Only answer whether the employer is liable for FBT or not and why or why not)

(a) An employer provides a Christmas lunch at a local restaurant, costing $1,000, for 10 of its key employees. (2 marks)

(b) A sporting club, which pays its honorary treasurer an honorarium of $5,000 per year, providing a car to him. The car is used 90% for club business. The treasurer has a full-time job at the local hospital. (2 marks)

(c) An employer gives each of its 15 staff a leg ham each valued at $60 for Christmas. (2 marks)

(d) An employer allows its staff to take home their laptop computers. It is estimated that only half the work done at home is business related. (2 marks)

(e) A company director, not in receipt of any remuneration from the company, uses the companys two-tonne truck while undertaking renovations to his own home. (2 marks)