What is ‘fringe benefit tax’(FBT)? Explain atleast 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: Define tax effect theory

A: Tax effect theory explains the impact of taxes on revenue or expense of a company. This theory is…

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

A:

Q: What is the logic behind allowing tax loss carrybacks/carryforwards?

A: Logic behind allowing tax loss carrybacks and carryforwards: A tax loss carryback permits a company…

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: 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 deferred tax?

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

Q: xplain the benefit approach and ability to pay approach with tax equity. Which approach is…

A: Taxes are the payments made by the individuals and corporation on their earnings. It is a compulsory…

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: 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: 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: 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: Taxation can be used to reduce the welfare loss arising from a negative externality. Select one: O…

A: True

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: What is a deferred tax liability?

A: Deferred tax liability arises due to the difference in the amount of accounting income and taxable…

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

A: WHAT IS 'FRINGE BENEFIT TAX' (FBT) ? FRINGE BENEFIT TAX IS IS THE TAX LEVIED ON ANY CONSIDERATION…

Q: e Tax and its ex

A: Income tax Taxes levied on the earnings of companies and individuals are referred to as income…

Q: fringe benefit tax

A: Tax deduction refers to the claims which are to be made as a reduction in the amount of taxable…

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 Deferred Tax Liability and why it might be created?

A: A deferred tax liability is the temporary differences which is created when there are differences…

Q: The general rule in income taxation is   capital gains taxation. regular income taxation fringe…

A: Answer: The income taxation covers many aspect of income sources. It includes salary, capital gains…

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: What is Percentage Tax?

A: Tax:- A tax is the compulsory payment which is imposed by the government on income and capital gain…

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.