Albert is employed by West let Ltd as a pilot. He is provided with a motor vehicle by his employer on 1 April 2022. The car has a market value of $38,000 and is leased by the employer. The annual running costs of maintain the car is $18,260 per annum.

He uses the car primarily to drive from the airport to home and return as well as in the weekend for personal use. He advises you that there is no work use of the car.

He is required to contribute $250 per month towards the running costs of the car.In addition to the car the employer also pays for Gary's telephone bills. The cost of the phone bills is $1,560 per annum. Gary estimates that he uses the phone 30% of the time for work purposes

1. What is the taxable value and FBT payable in respect of the motor vehicle using the statutory formula method for the year ended 31 March 20237 Would the FB payable be less or more if the employer used the operating cost method.
2. What is the taxable value and FBT payable in respect of the telephone bill for the year ended 31 March 2023?

Answer rating: 100% (QA)

Solution Based on the information provided the taxable value and FBT payable for the motor vehicle u... View the full answer