tehre is two questions each solution needs to be 1000 al least word and reference is most important

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The Fringe Benefit Tax Act, 1986 
The purpose of this study is to advice Chatswood Pty Ltd as to its fringe benefit tax 
liability for the year ended 31 March 2012. According to the Fringe Benefit Tax Act 
1986, “A fringe benefit is a payment to an employee other than salary and wages”. 
According to the FBT legislation, “A fringe benefit provided to an employee in respect of 
his/her employment”. The term ‘fringe benefit’ has broad meaning for the fringe benefit 
tax purpose that includes rights, services or privileges for examples: 
 An employer allows an employee for use a car for private purpose. 
 An employer gives an employee a cheap loan. 
 An employer provides entertainment to the employees. 
 An employer pays an employee’s gym membership. 
 An employer reimburses expenses incurred by an employee etc. 
Under this case, Paul is the sales manager of Chatswood Pty Ltd who is getting weekly 
salary of $1,000 and he is responsible for selling camera equipment in NSW. The 
Chatswood Pty Ltd is an employer provides the following fringe benefits to an employee 
(Paul): 
1. A Car for private use. 
2. Entertainment allowance and 
3. Cheap loan or loan at a concessional rate. 
On 1 April 2011, Paul was provided with a fully maintained company car which was 
newly purchased for $22,500 on the day. From 1 April 2011 to 31 March 2012, Paul 
travelled 20,000 Km for private purposes and paid nothing during the year. 
A Car Fringe Benefit defined under the Fringe Benefit Tax Act 1986, Section 7(1)(a), “at 
any time on a day, in respect of employment of an employee a car held by a person is 
applied for a private use of an employee”. 
The Base Value of Car is the Cost Price of $22,500 (Section 7.7). 
According to Section -9, the statutory formula method will be applied to this car fringe 
benefit to the Paul.  According to the Statutory formula the taxable value of fringe 
benefit of car would be as follows:

tehre is two questions each solution needs to be 1000 al least word and reference is most important

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