Calculate the taxable value of the benefit

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Question - Jim McEntee is provided with a company car which he is allowed to use for private purposes. The car was purchased on 1 November 2017 for $40,000. During the year Jim drove the car 30,000 km of which 60% were for business trips.

Costs associated with the vehicle (all paid by the employer) were:

Petrol and oil $1,020

Registration and insurance $1,500

Maintenance $500

Required - Calculate the Taxable Value of the benefit for the 2017/18 fringe benefits tax (FBT) year for the vehicle using both the statutory formula method and the operating cost method. (Show your workings for each method).

Reference no: EM133163902

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