ABC Pty Ltd provides an employee with a vehicle and needs to know…

Question Answered step-by-step ABC Pty Ltd provides an employee with a vehicle and needs to know… ABC Pty Ltd provides an employee with a vehicle and needs to know which method to use to calculate its FBT liability and minimize tax. The employee has kept a logbook stating 60% business use for the required period. The details of the fringe benefit are as follows:The base value (GST Inclusive Value) of the vehicle is $35,000 (purchased 3 July 2019, this is also the contract date).The vehicle was available for private use for 366 days.The vehicle was owned by the employer for 366 days.No contributions were made by the employee.GST is able to be claimed on the motor vehicle expenses.Running expenses were (Excl GST):registration and insurance $1,600services $2,000petrol and oil $5,500The motor vehicle’s opening adjustable value at 1st April 2021 is $22,000.Required: FBT Year 2022:Using the Statutory Formula Method and the Operating Cost Method, find the taxable value.Gross up the taxable value for each method.Calculate the Fringe Benefits Tax payable using each method.Which method would you use – and why? Law Social Science Tax law Share QuestionEmailCopy link Comments (0)