Fringe Benefits Tax Essay Example | Topics and Well Written Essays - 2500 words

Fringe Benefits Tax - undertake ExampleThis value is taxed on the top marginal tax judge.A statutory formula is order for the payment of the FBT based on the value of the car and the distance travelled during the year irrespective of whether the fomite was used for business or personal purposes. The lease payments or the running costs do not matter for the calculation of the FBT.If the car is made available for the personal use of the employees only for a real period of the year then the FBT payable is calculated on a proportionate basis with the employer gainful the FBT for the period for which the vehicle was actually used by the employee for his/her personal use instead of the whole year. at a lower place this method the employee is allowed to reduce the FBT liability by making their own contributions towards the running expenses of the car. These contributions are to be deducted from their by and by tax salary. The amount of running expenses spent by the employee goes to re duce the same amount of FBT liability payoff however to the maximum limit of the capital cost multiplied by the statutory fraction as specified by the Tax Office plus 10% GST. This implies that the personal taxation liability of the employee on the post-tax contribution is likely to be substantially less than the applicable FBT rate which is the maximum marginal rate of taxation. Robert SmithCost of the Vehicle$ 44,000Distance Travelled 20,000 KmsLease Rent$ 12000Running Cost and fear$ 3300Statutory percentage20 percent of the FBVAmount of FBT payable $