Can I have answer to Tutorial 13 (Week 13) Question 2?

It is for the subject of Revenue Law in Australia.

Taxation of Fringe Benefits and its Practical Applications. Question 2 James Martin is one of the shareholders/directors of a resident private company. (a) On 1 August 2015 he received a low interest loan of $120,000 from the company at an interest rate of 2%. On the same day, he used $40,000 to purchase shares in the company. The shares are ordinary shares on which dividends will be paid. The remaining $80,000 was used to finance the construction of a second bathroom to his Coogee residence. During the FBT year, James paid all interest amounts owing on the loan as and when they became due, but does not repay any of the principal sum. (b) What difference (if any) would it make to your answer, if soon after the loan had been provided to James the company decided to write-off the amount from its books and to forgive the debt? (c) On 28 March 2016 James paid his home telephone account of $900 (GST inclusive) for the three months to 15 March 2016. Forty per cent of the cost of the telephone bill was work related. On 31 March 2016 the company reimbursed James $900. (d) During the same period (i.e. the three months to the 15 March 2016) he used the company's telephone to make international calls to his family who were on a safari holiday in Africa. The total value of the charges by the telephone company in respect of these calls amounted to $840. Required: As the external accountant this company, management has asked you for a report which addresses the following: i.Do the transactions outlined above expose the company to any FBT and income tax liabilities? Where a transaction is likely to raise potential tax liabilities, what remedial action(s) can the company take to avert this? Where relevant you should undertake any calculations that might be necessary to illustrate your point. ii. Your report should also discuss any impacts that the provision of these benefits is likely to have on James. iii. Are there any formalities that James and the company would need to address in complying with the requirements of the tax laws with respect of the benefits provided above? What are the consequences of noncompliance with these formalities