Question 5

Andrew Chan is an employee of Telstar Enterprises Pty Ltd. As part of is salary package, Andrew is provided with a car that he uses for both private and work-related purposes. Telstar Enterprises provides you with the following information and has asked you to calculate the taxable value of the car fringe benefit: Date of purchase:

Andrew maintained a log book for the first 12 weeks of the FBT year showing work related travel of 4,000km out of a total of 7,500km travelled. Andrew also paid an unreimbursed amount of $2,000 for petrol that he paid for himself while on holiday. This amount is not shown in the figures above.

Required: Showing ALL your calculations and referring to ALL relevant sections in the Fringe Benefits Tax Assessment Act 1986, calculate the taxable value and the Fringe Benefits Tax payable in respect of this fringe benefit for the FBT year ending 31 March 2022. Your answer should include a comparison between the statutory formula method and the operating cost method.