Determine whether or not the following benefits are fringe benefits. Provide your reasoning with any relevant reference(s). a) Mobile phone and a laptop provided to a tax manager of an accounting firm who takes them home over the weekends. b) A company provides a car to the managing director for both business and private uses. As the managing director's licence has suspended for 4 months, the company provides the services of a chauffeur to the managing director and subsequently invoiced for $10,000. c) An employer provides biscuits and a fruit platter for the employees to consume on a working day and on the business premises. d) An employer takes out 10 management staff to a restaurant for meal and alcohol to celebrate the end of a successful year, which costed $2,000 in total (or $200 per employee). There was no other non-cash benefit provided to the management staff during the FBT year.

Determine whether or not the following benefits are fringe benefits. Provide your reasoning with any relevant reference(s). a) Mobile phone and a laptop provided to a tax manager of an accounting firm who takes them home over the weekends. b) A company provides a car to the managing director for both business and private uses. As the managing director's licence has suspended for 4 months, the company provides the services of a chauffeur to the managing director and subsequently invoiced for $10,000. c) An employer provides biscuits and a fruit platter for the employees to consume on a working day and on the business premises. d) An employer takes out 10 management staff to a restaurant for meal and alcohol to celebrate the end of a successful year, which costed $2,000 in total (or $200 per employee). There was no other non-cash benefit provided to the management staff during the FBT year.

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter3: Business Income And Expenses

Section: Chapter Questions

Problem 21MCQ

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