What is ‘fringe benefit tax’ (FBT)? Explain at least five main salient features of the FBT?

Q: What is the total allowed fringe benefit deduction

A: Fringe Benefits are the additional benefits provided to the employees in addition to their actual…

Q: TRUE OR FALSE? In computing for the comprehensive income, the net remeasurement gain on defined…

A: Other Comprehensive income is added to Net income to arrive at Comprehensive Income. Comprehensive…

Q: A. Explain why General Consumption Tax (GCT) is considered a Value Added Tax.

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one sub-part at a…

Q: Why is fringe benefit tax important?

A: Fringe benefits are those compensation and benefits provided to the employees which are other than…

Q: What distinguishes an income tax from other taxes?

A: A tax is a governmental entity's required financial charge or other kind of levy put on a taxpayer…

Q: What is the tax shield of interest?

A: Interest tax shields: It alludes to the assessment obligation decrease because of the interest…

Q: Why is the Donor's tax is the advantageous for the taxpayer? Explain

A: Donar's tax refers to the tax on a donation or gift. It is imposed on the gratuitous transfer of…

Q: What effect does intraperiod tax allocation have onreported net income?

A:

Q: Which of the following is a local tax? *

A: Option a is wrong because value added tax is an indirect tax imposed on the value of goods and…

Q: what are the characteristics of a good tax system?

A: Tax system is designed by the government of every country which is imposed on the individual’s…

Q: What is the difference between tax reliefs and tax credits?

A: Taxes are mandatory payments placed on individuals or businesses by a government agency, whether…

Q: Define each of the following terms:i. Alternative minimum tax (AMT)

A: Alternative minimum taxIt is a tax levied by the U.S federal government with respect to income tax…

Q: What is ‘fringe benefit tax’(FBT)? Explain atleast five main salient features of the FBT?

A: Fringe Benefit Tax: It refers to a tax which an employer needs to pay on the value of fringe or…

Q: What is deferred tax?

A: Balance sheet is the statement that indicates the final position of an entity.

Q: What are the different type of income tax?

A: The answer for the question on the different types of income tax is discussed hereunder : Taxes are…

Q: What is a deferred tax asset and how is the value created?

A: Deferred tax asset: When Income Tax Expense account is more than the Income Tax Payable account,…

Q: Based on the range of possible SUTA tax rates and thresholds, which of the following circumstances…

A: The State Unemployment Tax Act (SUTA) tax:- It is a type of payroll tax that all employers must pay…

Q: How do you reduce taxes by contribution to a define contribution plan?

A: Defined contribution plan: These are the retirement plans wherein the employee and/or the…

Q: The Tax Code differentiates between qualified option plans, including incentive plans, and…

A: Stock options:  Stock options are the stock-based compensation plans provided in the form of an…

Q: How does the disposition effect impact investor tax?

A: Introduction: The disposition effect is coined by economists Hersh Shefrin and Meir Statman in a…

Q: What is the value for IHT and capital gain tax (CGT) purposes?

A: What is Inheritance Tax?Inheritance Tax (IHT) is a tax on the estate of someone who has died,…

Q: Describe the Replacement Analysis with Tax Considerations?

A: Introduction: Capital budgeting is one of the important techniques used to determine the value that…

Q: AT and its examples?

A: A value-added tax (VAT) could be a consumption tax placed on a product whenever price is else at…

Q: What is the resort's net income for tax purposes?

A: Safe haven wildlife resort operate a proprietors-ship that generate $20000 in income under GAAP.…

Q: How can we use Replacement Analysis with Tax Considerations?

A: Using of replacement analysis with tax consideration help the investor in order to select the best…

Q: Differentiate “normal tax “ from “final tax”.

A: Tax is the amount which is paid by the tax payer on the basis of the income earned by him during a…

Q: How to calculate Value-added tax

A: Value added tax is a type of tax that is charged by the central government on the sale of…

Q: What is a deferred tax asset?

A: Deferred tax asset: When the Income Tax Expense account is more than the Income Tax Payable account,…

Q: Is fringe tax considered a penalty tax?

A: A fringe benefit is a final tax on an employee's salary that the company is required to withhold.…

Q: Fringe benefit tax is computed based on the monetary value of the fringe benefit. a.true b.false

A: Fringe benefits are benefits in addition to an employee's wages paid by employer, for example…

Q: Distinguish between Tax Exemption and Tax Amnesty?

A:

Q: How do defined-benefit plans differ from defined contribution plans?

A: For long, pension has been taking care of post-retirement needs of a large section of retirees.…

Q: Compare the bases of the Hall-Rabushka flat tax, a broad-based general sales tax, and a…

A: Hall-Rabushka flat tax: This concept was brought by Hall and Rabushka because flat tax would be…

Q: Define intraperiod tax allocation. Why is the process necessary?

A: Intra-period tax allocation:   It is the allocation of an organization’s total income tax expense…

Q: Fringe benefit tax is computed based on the monetary value of the fringe benefit. TRUE OR FALSE?

A: Fringe benefit tax (FBT) is defined as the tax which employers pay on the benefits paid to the…

Q: what is the special consumption tax?

A: Consumption can be briefly defined as the spending by individuals and households on final goods and…

Q: Which is correct?  a) The de minimis benefits not exceeding their thresholds are exempt from income…

A: Solution Explanation -Amounts exceeding their threshold are added to the 90000 threshold and amounts…

Q: How is the Accumulated Benefit Obligation (ABO) different from the Projected Benefit Obligation…

A: The value that is used for the compensations of the employees is the only difference between the…

Q: Define each of the following terms:a. Interest tax shields; value of tax shield

A: tax shield is deduction ability to shield portions of the taxpayers income from taxation.

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.