Reference no: EM133272702

Question 1. A company files its FBT returns on a quarterly basis. It owns a motor vehicle with a cost of $35,000 (GST-inclusive). For the quarter ended 31 December 2017, it provides the motor vehicle to an employee. The motor vehicle is available for the employee's private use. During the quarter, the motor vehicle was used for emergency calls on five days and was taken away on a business trip for seven days. The company uses the cost method for calculating FBT on its motor vehicles. Calculate the taxable value of the motor vehicle for the quarter ended 31 December 2017.

Question 2. ABC Limited provides a loan of $5,000 to Marie, an employee. The loan is advanced on 1 April 2018, with a low interest rate of 3%. Marie does not make any loan repayment for the first six months. Calculate the taxable value of the loan for the quarter ended 30 June 2018. The prescribed rate of interest for the quarter ended 30 June 2018 is 5.77%.

Question 3. A company carries on an electrical business. The company sends two of its employees to another city to carry out electrical work on a newly built supermarket. The project will last three days. The employees are provided with free accommodation while they are away working on the project. Does the provision of the accommodation give rise to a fringe benefit?

Question 4. Garry decides to visit his friend in Rotorua. He drives there using his work vehicle which cost $30,000. Garry used the vehicle 40% of the time for private purpose His petrol for this visit costs $200, which he pays for personally. Calculate the value of the motor vehicle fringe benefit.