Advise Samit and his employer on the tax implications

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Question - Fringe Benefit Tax - Samit borrowed money from his employer amounting to $15,000 on the 2nd September, 2019 because of an emergency situation. His mother was unwell and she lives abroad. Samit needs to urgently send the money to his parents. Because Samit is a good employee, his employer lent him the money with no interest. Furthermore, on the 28th February, 2020 due to compassionate reasons shown by the company - his employer - , the company decided that he was only required to repay $5,000. The employer is GST registered.

Required - Please advise Samit and his employer on the tax implications of the above transaction. Please refer to the relevant Tax legislation and other appropriate sources, including cases, if required.

Reference no: EM132853270

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