TRUE OR FALSE Write True if the statement is correct, otherwise, write False or 1. A fringe benefit is any goods, service or other benefits furnished c granted by an employer in cash or in kind, including basic salaries to individual employees. 2. A fringe benefit which is subject to the fringe benefit tax is taxable income of the employee. 3. A fringe benefit which is not subject to the fringe benefit tax is taxable income of the employee. 4. Fringe benefits subject to fringe benefit tax cover only those fringe benefits given or furnished to a managerial or supervisory employee. 5. Fringe benefit tax shall be treated as a final income tax on the employee withheld and paid by the employer on a quarterly basis. 6. The grossed-up monetary value of the fringe benefit is the actual amount received by the employee. 7. The grossed-up monetary value of the fringe benefit shall be determined by dividing the monetary value of fringe benefit by the grossed up monetary value factor. 8. The person liable for fringe benefit tax is the employer, whether he is an individual, professional partnership or a corporation regardless of whether the corporation is taxable or not or the government and its instrumentalities 9. A managerial employee is one who is vested with powers of prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall discharge, assign or discipline employees, or to effectively recommend such managerial actions. 10. The grant of fringe benefits to the employee is exempt from tax if such grant is required by the nature of, or necessary to the trade, business or profession of the employer. 11. The amount on which the fringe benefit tax rate is applied is the monetary value of the fringe benefit. 12. The amount on which the fringe benefit tax rate is applied is the amount deductible by the employer from its gross income. 13. Grossed-up monetary value is reflected in the books of accounts as fringe benefit expense and fringe benefit tax expense. 14. Failure to withhold the required tax on salary is collectible from the employer. 15. Failure to withhold the correct amount due to false information supplied by the employee shall be the liability of the employee.