Question 5 (10 Marks)

Clives Whitegoods Pty Ltd has assisted its employees by undertaking the following transactions:

1. Each salesman was offered a Wide Screen TV that cost the company $3,000 to make and retailed for $6,000 at a discount Price of $3,500. Twenty salesmen took advantage of the offer.

2. At Christmas each employee was given a Coles hamper that was purchased in bulk for $300 each.

3. The company paid the school fees of the Chief Executive Officers (CEOs) three children at a cost of $120,000 per year.

4. The company provided the CEO with a Rolls Royce car that cost it $1.2 million. The car was available for the whole year and the CEO contributed nothing towards the running expenses.

5. Each of the forty salesman was provided with a $1000 mobile phone, which was used as an in house paging system.

Required

Calculate the total Fringe Benefits Tax liability of Clives Whitegoods Pty Ltd. (5 x 2 = 10 Marks)