During the 2019/20 FBT year, Tesla Ltd gave an employee a personal loan of $50,000. The loan existed for the entire FBT year and provided to the employee at a low interest rate of 2.5% pa. The employee used the loan to pay for her wedding & honeymoon. Required: Calculate the fringe benefit payable of the Loan Fringe Benefit

SWFT Individual Income Taxes
43rd Edition
ISBN:9780357391365
Author:YOUNG
Publisher:YOUNG
Chapter19: Deferred Compensation
Section: Chapter Questions
Problem 49P
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During the 2019/20 FBT year, Tesla Ltd gave an employee a personal loan of $50,000. The loan existed for the entire FBT year and provided to the employee at a low interest rate of 2.5% pa. The employee used the loan to pay for her wedding & honeymoon.

Required: Calculate the fringe benefit payable of the Loan Fringe Benefit

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