1. On 1 April 2021, John, who is an employee of Sydney Pty Ltd (the "Company"), received a low-interest loan of $100,000 for one year from the Company. The interest rate on the loan was 1% per annum. John immediately used $20,000 of the loan to buy some shares in BHP and the balance to reduce his home mortgage. In addition, on 1 April 2021, the Company purchased a new car at a cost of $30,000 . The car was solely given to John for private use from 1 April 2021 to 31 March 2022.
2. 
   
3. (a) Discuss the fringe benefits tax consequences arising from the above information. 
4. 
   
5. (b) Calculate the fringe benefits tax liability for the year ended 31 March 2022.

Answer rating: 100% (QA)

a The fringe benefits tax consequences arising from the information given are as follows T... View the full answer