During the current year, Tom Jerry Pty Ltd provided fringe benefits to its employees The taxable value of each benefit and details are given below Property fringe benefit $15,000 This value includes Goods and Service Tax (GST) Debt waiver fringe benefit $8,000 This value does not include GST External Expense Payment $6000 This value includes GST You are required to respond to the following questions a) Which tax legislation (specify the act provision) impose a tax on the employer's benefits to the employee in the above scenario b) Which of the above benefits gives rise to an input tax credit to Tom Jerry Pty Ltd and why Briefly explain the reason c) Calculate the Fringe Benefits Tax (FBT) payable amount showing all the required steps

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Question: During the current year, Tom & Jerry Pty Ltd provided fringe benefits to its employees. The taxable value of each benefit and details are given

During the current year, Tom & Jerry Pty Ltd provided fringe benefits to its employees. The taxable value of each benefit and details are given below:

Property fringe benefit - $15,000: This value includes Goods and Service Tax (GST).
Debt waiver fringe benefit - $8,000. This value does not include GST.
External Expense Payment - $6000. This value includes GST.

You are required to respond to the following questions:

a) Which tax legislation (specify the act/provision) impose a tax on the employer's benefits to the employee in the above scenario?

b) Which of the above benefits gives rise to an input tax credit to Tom & Jerry Pty Ltd and why? Briefly explain the reason.

c) Calculate the Fringe Benefits Tax (FBT) payable amount showing all the required steps.

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