Dr Sunny, an employee of the company Moon Pty Ltd, is granted a loan by the company for $500,000 on 3 April 2022 with an interest rate of 1% per annum. Dr Sunny uses those funds as follows: $200,000 towards purchase of a holiday home in Bowral NSW, and $300,000 to purchase dividend paying shares on the Australian Stock Exchange. Calculate the FBT payable by Moon Pty Ltd in respect of this arrangement for the FBT Year ending 31 March 2023, providing brief explanations with references to relevant law as necessary

Answer rating: 100% (QA)

Here are the steps to calculate the FBT payable by Moon Pty Ltd for the loan to Dr Sunny 1 Loan amou... View the full answer