Homework answers / question archive /  The directors of Low Life Computers Pty Limited ("LLC") have faxed you the following information so that you may prepare written advice that covers:  -The value of each fringe benefit (with car benefits, where a log book has been maintained, you are required to perform a comparison of the methods for valuing car benefits); -The total taxable value of all fringe benefits; -The total fringe benefits tax that will be payable for the year ended 31 March 2017 and the timing of those payments; and -Advise as to what amounts are required to be disclosed on the employee PAYG withholding summaries (formerly group certificates) for the year ended 30 June 2017

 The directors of Low Life Computers Pty Limited ("LLC") have faxed you the following information so that you may prepare written advice that covers:  -The value of each fringe benefit (with car benefits, where a log book has been maintained, you are required to perform a comparison of the methods for valuing car benefits); -The total taxable value of all fringe benefits; -The total fringe benefits tax that will be payable for the year ended 31 March 2017 and the timing of those payments; and -Advise as to what amounts are required to be disclosed on the employee PAYG withholding summaries (formerly group certificates) for the year ended 30 June 2017

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 The directors of Low Life Computers Pty Limited ("LLC") have faxed you the following information so that you may prepare written advice that covers:
 -The value of each fringe benefit (with car benefits, where a log book has been maintained, you are required to perform a comparison of the methods for valuing car benefits);
-The total taxable value of all fringe benefits;
-The total fringe benefits tax that will be payable for the year ended 31 March 2017 and the timing of those payments; and
-Advise as to what amounts are required to be disclosed on the employee PAYG withholding summaries (formerly group certificates) for the year ended 30 June 2017. 
In this question, all amounts are inclusive of GST and LLC is entitled to and has claimed a GST input tax credit for GST paid on those amounts attracting GST.
LLC is an employer. The following salary packages have been made to its employees:
Employee 1 - Edwina
A BMW is provided to Edwina (working director) for both business and personal use. The cost of the car was $85,000 (purchased 15 May 2016) and the car traveled 28,500 km to 31 March 2017. A log-book was maintained by Edwina that shows that business use of the car was 85%. The car is owned by the company and operating costs were fuel $11,500; pro-rata registration $1,500 and insurance $2,300.
The benchmark interest rate is 5.65% and depreciation rate is 25%
Employee 2 - Jimmy
Jimmy (working director) uses the company's Barina for personal use. The cost of the car was $29,900 (purchased 1 December 2016) and the car travelled 30,000km during the year. No log book has been kept. The car is owned by the company and operating costs are $2,820; pro-rata registration $820 and insurance $515.
The benchmark interest is 5.65% and depreciation rate is 25%
Employee 3 - Barissa
Barissa is the marketing director for LLC. She was provided with a loan of $230,000 (1 April 2016) from LLC, with an interest rate of 3.5%. Barissa used $55,000 to repay her mortgage on her personal residence and the remaining $175,000 to purchase shares in publicly listed companies. All the share investments yielded a dividend during the FBT year ended 31 March 2017.
LLC also paid Barissa's annual subscription to the Australian Marketers' Professional Association of $940 and $4,250 return airfare to Singapore to enable Barissa to visit her extended family.