taxation law 555

On 1 July 2020 Orange Pty Ltd leases a car to be available for the sole use of their finance manager. This employee parked the car at her home each night except for the entire month of February 2021 when the car was left at the business premises while she was overseas. No other employee used the car during February 2021. Details relating to the car are as follows: Value of the leased car Monthly lease payments Business travel percentage as per logbook Insurance and registration (1 July 2020 to 30 June 2021) Petrol & Oil (paid by employee) Repairs (1/2/21) $62,000 $1,300 62 % $1,800 $1,700 $1,430 Orange Pty Ltd paid all costs in relation to the car with the exception of the petrol & oil, which was paid by the employee. All necessary declarations were received. Required: (A) Calculate the taxable value of the car fringe benefit for the 2021 Fringe Benefits Tax year using two alternative methods. (8 marks) (B) Calculate the minimum Fringe Benefits Tax payable by Orange Pty Ltd in respect of the above car fringe benefit. Orange is registered for GST. (2 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). On 1 July 2020 Orange Pty Ltd leases a car to be available for the sole use of their finance manager. This employee parked the car at her home each night except for the entire month of February 2021 when the car was left at the business premises while she was overseas. No other employee used the car during February 2021. Details relating to the car are as follows: Value of the leased car Monthly lease payments Business travel percentage as per logbook Insurance and registration (1 July 2020 to 30 June 2021) Petrol & Oil (paid by employee) Repairs (1/2/21) $62,000 $1,300 62 % $1,800 $1,700 $1,430 Orange Pty Ltd paid all costs in relation to the car with the exception of the petrol & oil, which was paid by the employee. All necessary declarations were received. Required: (A) Calculate the taxable value of the car fringe benefit for the 2021 Fringe Benefits Tax year using two alternative methods. (8 marks) (B) Calculate the minimum Fringe Benefits Tax payable by Orange Pty Ltd in respect of the above car fringe benefit. Orange is registered for GST. (2 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac)