Mark has been an employee of QP Pty Ltd (QP) and had been given a loan on the same terms as the public a few years earlier. He has been paying regularly and his repayments were up to date, when he was offered a promotion to CEO on the 1st Jan 2020. So that he would be happy to accept the promotion, the Board of Directors agreed to immediately waive all the debt still owing on the loan. The amount waived was $16632. QP is not entitled to claim an input tax credit for GST purposes.

Required: Advise QP of the fringe benefits tax payable (rounded to the nearest dollar) in relation to the debt waiver

Answer rating: 100% (QA)

Answer To calculate the fringe benefits tax FBT payable in relation to the debt wai... View the full answer