Understanding Fringe Benefits Tax Implications for Taxpayers

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

1TAX
Table of Contents
Issue:..........................................................................................................................................2
Laws:..........................................................................................................................................2
Application:................................................................................................................................4
Conclusion:................................................................................................................................6
References..................................................................................................................................7

2TAX
Issue:
In the given case the issue of the concern is to understand the fringe benefits tax implecation
of the tax payer who is assessable to pay taxes.
Laws:
Under the governance of the "section 6-1 of the ITAA 1997" income with the help of
individual effort or the earning got from the individual assertion for the various sources of
income such as salaries, wages, commission, allowances, superannuation or other type of
continues that the person paying tax got with regard to the administration put into (Endres &
Spengel, 2015). On the basis of the employment offering personal administrations may be
related to income tax with the end goal of the worker or fringe benefit tax in case of the
company. For earnings to be delegated revenue there has to be a link with the earnings
starting from the private administration of person paying tax.
The link is clearly settled for the normal things of private administrations that
incorporates the payments of the commissions or any type of subordinate payments which
are within the occurrence of work. "Section 6-5 of the ITAA 1997" characterizes that
income in view of the ordinary ideas is can be taxed under the "ITAA 1997". Ordinarily
under "section 6-5 of the ITAA 1997”, lion's share of the earning that comes to the person
paying tax is considered as ordinary profits (Enste, 2018). The legal importance of the profits
is expressed on account of "Scott v Commissioner (1935)". The commissioner referred for
the learnings of the ordinary business ideas and utilisation of humanity.. A thing of salary
nature is determined for the person who pays tax when it gets back home. The court in
"Senior member v FC of T (1997)" referred the maintenance instalment that is delivered to
the workers for consenting to stay utilized for the time of a year after the appropriation were
viewed as the earning or compensation from the service.
The fringe benefit payments are made to the workers as additional benefits out of the
normal course of wage payments. According to the statute of fringe benefit tax, it is about the
benefit that is given in connection to the service. This adequately implies the advantage that
is given to somebody because of the way they are representative. The car fringe benefit is
characterized under "subsection 136 (1) of the FBTAA 1986". By prudence of the service
utilization of car by the worker establishes benefit under the "subsection 136 (1) of the