Mary runs a small art gallery in Tasmania. Although the number of sales made each year is quite low, the artwork she sells are high profit items and she estimates that she earns approximately $200,000 annually from the business. She recently sold a painting by a new artist for $33,000.   Which of the following statements is true? 

(A) Mary must give the artist $3,000 from the $33,000 received. 

(B) Mary must remit to the Australian Taxation Office $3,000 from the $33,000 received. 

(C) Mary must charge the purchaser an extra $3,333 as GST. 

(D) None of the above.

An employee travels by taxi between home and works each day with a stopover at McDonald’s on some mornings to buy breakfast. The employer pays for the taxi fare. What category of fringe benefit does the above scenario raise?

a. The taxi fare is a car fringe benefit.

b. The taxi fare amounts to an expense payment fringe benefit.

c. The taxi fare is an external property fringe benefit.

d. The taxi fare is exempt.

Answer rating: 100% (QA)

1 D None of the above Typical examples of highmargin businesses are highend retailers software and jewelry Highmargin companies therefore have a low c... View the full answer