Q14 part (3).docx - Question Mika is a consultant for Jusco company During the 2017/2018 FBT year she receives a base salary of $50,000 plus the

Q14 part (3).docx - Question Mika is a consultant for Jusco...

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Question: Mika is a consultant for Jusco company. During the 2017/2018 FBT year she receives a base salary of $50,000 plus the following benefits: a) She received an entertainment allowance of $2,000 pa. b) Her telephone rental ($280) and her subscription to a professional association ($250) are also paid by Jusco c) Mika is provided with the use of a TV valued at $850 d) A trip to the US is provided as part of the Jusco staff incentive program. The cost of the trip was $3,650 e) Mika’s daughter needed a notebook computer for her education, Jusco leased a notebook computer on 1/5/2017 at a cost of $100 per month for use by Mika’s daughter. Required: Advise Jusco and Mika as to the tax consequences of the above. Issue: what are the tax consequences of Jusco and Mika? Law: Medicare Levy=Taxable Income*2% Income Tax Rates Act 1986 Income Tax Assessment Act Fringe Benefits Tax Assessment Act 1986(Cth) Type1 Fringe Benefit Amount: Total taxable value of all Type 1 fringe benefits*2.0802 Type2 Fringe Benefit Amount: Total taxable value of all Type 2 fringe
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benefits*1.8868
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  • Three '17
  • syan

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