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Question: Sam accepts an offer of employment made by QP Pty Ltd to be their new associate director.
On 1 August 2016 QP Pty Ltd made an interest free loan of $620584 to Sam.
Sam used the loan money to buy a rental property.
On 1 January 2017, Sam's employer told him that he did not have to repay the loan. The debt was being waived. QP Pty Ltd is not entitled to claim any input tax credit for GST purposes.
Required:Advise QP Pty Ltd of the fringe benefits tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2017.
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