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Taxation Law Assignment - Fringe Benefit tax Assessment Act

   

Added on  2020-05-28

10 Pages1887 Words77 Views
Running head: TAXATION LAWTaxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
Taxation Law Assignment - Fringe Benefit tax Assessment Act_1
TAXATION LAW1Table of ContentsPart A:........................................................................................................................................2Answer to question A:................................................................................................................2Determination of fringe benefit:.................................................................................................2Part B:.........................................................................................................................................6Answer to question A:................................................................................................................6Answer to question B:................................................................................................................6Answer to question C:................................................................................................................7Answer to question D:................................................................................................................8Reference List:...........................................................................................................................9
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TAXATION LAW2Part A: Answer to question A:As defined under the Fringe Benefit tax Assessment Act 1986 any kind of benefitapart from the salaries and wages provided to the employee would be regarded as the fringebenefit. Important criteria of Fringe Benefit tax Assessment Act 1986 is that there must bethe existence of the employee and employer relationship to make an appropriate use of fringebenefit tax legislation (Barkoczy 2016). Given that the car is used by employee for theirpersonal use of the same is available for use privately even though it is not in the course ofemployment will attract fringe benefit tax. Furthermore, section 7 of the Fringe Benefit TaxAssessment Act 1986 provides the determination of the car fringe benefit. Section 7 of the Fringe Benefit Tax Assessment Act 1986 evidently lay down thatwhere the employer provides car to employee for his private use, it would constitute a fringebenefit. To determine the fringe benefit of car there are namely two methods. The process ofdetermining the assessable amount of car fringe benefit is laid under section 9 of the FringeBenefit Tax Assessment Act 1986 (Lang et al. 2015). The statutory method undertakes thevalue of car in determining the fringe benefit tax. Under section 10A and 10 B of theFBTAA 1986, the operating cost method is used in ascertaining the car fringe benefit. Indetermining, the fringe benefit tax under the operating method the administrative costincurred in running the car should be recorded in a logbook. Importantly, the lowest amountfringe benefit tax that is yield from using both the method should be considered.Nevertheless, appropriate recording of expenses should be maintained under the operatingcost method.
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