On 1 April of the current FBT year, Rex Bolton received a new Mazda CX-9 from his
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Question:
On 1 April of the current FBT year, Rex Bolton received a new Mazda CX-9 from his current employer OMEGA Pty Ltd, an IT solution company. The value of the car is $42,000. The total monthly cost including the lease and other running costs are $1,520 per month.
During the current FBT year, Rex travelled 26,000 km (he has maintained a logbook), of which 70% were for business purposes.
Required:
Analyse and explain the above situation for the benefit provided to Rex Bolton by his employer. Apply a suitable option by comparing all the available calculation methods to reduce the tax liability for OMEGA Pty Ltd.
In your analysis, you are required to show the step-by-step FBT calculations and advise Rex of the suitable option.
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