Hook, Line and Plunger Coffee Shop provide their employees with the following fringe benefits during the 2017/18 FBT year. The employer is registered for GST and able to claim input tax credits.

Description of Fringe Benefit Taxable Value

Low interest loan $2,450

Payment of private telephone account 1,940

Use of a Volkswagen car (purchased January 2000) 3,380

Use of a Holden car (purchased March 2016) 9,415

Payment of private school fees (no GST) 10,825

The employer has not paid any FBT instalments during the year.

Required:

Calculate Fringe Benefits Tax payable by Hook, Line and Plunger Coffee Shop for the

2017/18 FBT year.

Show separate calculations for any Type 1 and Type 2 fringe benefits.

Type 1 (Only) Fringe Benefits:

Taxable Values of Fringe Benefits: (List By Description)

Use of a Volkswagen car $3,380

Use of a Holden car $9,415

Payment of private telephone account $1,940

= Total Taxable Value (Type 1 Only) $14,735

Gross-Up Factor (Type 1 Only) 2.0802

= Total Grossed-Up Value of Benefits (Type 1 Only) $30,651.75

@ FB Tax Rate % 47%

= Total Fb Tax Payable (Type 1 Benefits Only) $14,406.32

Type 2 (Only) Fringe Benefits:

Taxable Values Of FB: (List By Description)

Low interest loan $2,450

Payment of private school fees $10,825

= Total Taxable Value (Type 2 Only) $13,275

Gross-Up Factor (Type 2 Only) 1.8868

= Total Grossed-Up Value of Benefits (Type 2 Only) $25,047.27

@ Fb Tax Rate % 47%

= Total Fb Tax Payable (Type 2 Benefits Only) $11,772.22

TOTAL FB TAX PAYABLE (TYPE 1 PLUS TYPE 2)

$26,178.54