Fringe Benefit Tax (FBT)

(a) Mason Ltd, which is GST registered, provides the following benefits to its employees for the year

ended 31 March 2022.

• A motor vehicle which cost $60,000 (GST-inclusive) is provided to Wiremu for private use. During the year the vehicle was not available for Wiremu’s private use for 10 days when it was being repaired and serviced. Wiremu contributed $1,000 towards the running costs of the vehicle during the year.
• On 1 April 2021 an interest free loan of $50,000 was made to Zixuan Li to help him buy his first house. The prescribed interest rate for this period was 4.5%.

Required:

Calculate the taxable value of the two fringe benefits provided by Mason Ltd for the year ended 31 March 2022. Show all workings

Answer rating: 100% (QA)

1 Taxable value of motor vehicle Base value of car 60... View the full answer