1) Kylie is an Accountant employed by Number One Pty Ltd. During the FBT year ended 31...
Question:
1) Kylie is an Accountant employed by Number One Pty Ltd. During the FBT year ended 31 March 2021 she was provided with a variety of benefits by the company. Of those benefits listed below which one would not result in a taxable fringe benefit to Number One Pty Ltd?
a. Payment of Kylie’s annual subscription to professional legal association $1,200
b. Payment of Kylie’s annual yoga club membership $500
c. Payment of school fees for Kylie’s daughter $4,400
d. Payment of Kylie’s home Netflix subscription used by her to watch movies $250
e. Use by Kylie of company owned holiday house on weekends (estimated market value of use $2,800)
2)Which of the following statements is most correct?
a. The prepayment rules for small business entity (SBE) taxpayers and individuals not carrying on a business are similar.
b. Taxpayers using the SBE method of accounting can claim all their prepayments in the year they are incurred.
c. Once a taxpayer has incurred an expense for services to be received in the future, the taxpayer can claim a tax deduction.
d. Expenditure is excluded expenditure if the prepayment made is less than $5,000.
e. The prepayment rules are the same for all taxpayers.
Statistics for Business and Economics
ISBN: 978-0132930192
8th edition
Authors: Paul Newbold, William Carlson, Betty Thorne