College

We appreciate your visit to Sam accepts an offer of employment made by QP Pty Ltd to be their new associate director On 1 August 2016 QP Pty Ltd made. This page offers clear insights and highlights the essential aspects of the topic. Our goal is to provide a helpful and engaging learning experience. Explore the content and find the answers you need!

Sam accepts an offer of employment made by QP Pty Ltd to be their new associate director. On 1 August 2016, QP Pty Ltd made an interest-free loan of $603,736 to Sam. Sam used the loan money to buy a rental property. On 1 January 2017, Sam's employer told him that he did not have to repay the loan; the debt was being waived. QP Pty Ltd is not entitled to claim any input tax credit for GST purposes.

**Required:** Advise QP Pty Ltd of the fringe benefits tax payable, if any, (rounded to the nearest dollar) for the FBT year ended 31 March 2017.

**Answer:**

Answer :

Final answer:

A fringe benefit tax payable would likely arise from the circumstance where QP Pty Ltd waived a loan for their associate director, Sam. The calculation of this tax requires specific rates and tax bracket information not provided. Therefore, a tax professional is needed to calculate the exact amount.

Explanation:

The given scenario highlights a circumstance pertaining to Fringe Benefits Tax (FBT) in the field of business. FBT is a tax employers pay on certain benefits they provide to their employees, including their employees' family or other associates. In the case of QP Pty Ltd and their associate director, Sam, the interest free loan subsequently waived is considered a fringe benefit. An important point to note is that the FBT is calculated on the grossed-up taxable value of the fringe benefit. This gross-up rate is meant to account for the fact the benefit was provided tax-free. However, without the specific rate and marginal tax bracket information, it is impossible to precisely compute the FBT payable for QP Pty Ltd. The employer would need to engage an accountant or tax professional to calculate the exact

fringe benefits tax payable.

Learn more about Fringe Benefits Tax here:

https://brainly.com/question/32802685

#SPJ11

Thanks for taking the time to read Sam accepts an offer of employment made by QP Pty Ltd to be their new associate director On 1 August 2016 QP Pty Ltd made. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada