BLAW30002 Lecture 5: CALCULATE THE TAXABLE VALUE
17 Aug 2018
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Calculate the taxable value (cid:120) car fringe benefit either, the statutory formula method (s 9) see page 190. Or: the operating cost method (s 10) taxable value = (c * (100% -bp)) r. Where c = operating costs (petrol, lease payments, depreciation) 50/50 method (s 37b); [apply automatically unless employer chooses register method] (cid:153) taxable value= 50% of all meal entertainment expenditure [whether to clients etc] Register method (s 37c) (cid:153) s 37cb: employer must maintain register of all meal entertainment expenditure over 12 week period & determine % that relates to provision of meal entertainment as fringe benefits. [provided to employees/associated & not to others like clients!!] (cid:153) taxable value= total meal entertainment expenditure incurred in fbt year * register percentage (cid:120) property fringe benefit: 22: in-house 75% of lowest price charged to customers or 75% cost to acquire benefit from the provider (ss. 48 & 49: external cost to employer (ss 50 & 51)
