Claire Goodtimes is employed as the Marketing Consultant with Promenade Cosmetics Ltd. Her salary package included being provided with a car. On 1 September 2015, Promenade Cosmetics Ltd purchased a red VW Golf convertible costing $63,000 (including GST) for her. The car was garaged at Claire’s private residence throughout the 2015/16 FBT year. The car was fully maintained by the company, except that Claire was expected to contribute $1,000 a year towards the cost of petrol. During this period, Promenade Cosmetics Ltd incurred the following expenditure (all GST inclusive) on the vehicle:

 

 

Registration and insurance $1,800 Petrol $3,600

Repairs and maintenance $1,500

Windows tinted prior to on delivery $2,800

 

 

Claire maintained a log book for 12 weeks which recorded the following:

 

Travel to visit customers from office and return 10,000 kms

Travel to office from home and return 3,000kms

Family holidays 2,000kms

Weekend use 3,000kms

total:18000kms

 

1): Advise Promenade Cosmetics Ltd on the amount of FBT it is required to pay for the 2015/16 year:

 

a. using the statutory formula method

b. using the operating cost method.

 

2): How would your answer to (1) differ if Claire was overseas for all of March 2016 and left the VW Golf convertible garaged at her employer’s premises during that period? 

Claire Goodtimes is employed as the Marketing Consultant with Promenade Cosmetics Ltd. Her salary package included being provided with a car. On 1 September 2015, Promenade Cosmetics Ltd purchased a red VW Golf convertible costing $63,000 (including GST) for her. The car was garaged at Claire’s private residence throughout the 2015/16 FBT year. The car was fully maintained by the company, except that Claire was expected to contribute $1,000 a year towards the cost of petrol. During this period, Promenade Cosmetics Ltd incurred the following expenditure (all GST inclusive) on the vehicle:

 

 

Registration and insurance $1,800 Petrol $3,600

Repairs and maintenance $1,500

Windows tinted prior to on delivery $2,800

 

 

Claire maintained a log book for 12 weeks which recorded the following:

 

Travel to visit customers from office and return 10,000 kms

Travel to office from home and return 3,000kms

Family holidays 2,000kms

Weekend use 3,000kms

total:18000kms

 

1): Advise Promenade Cosmetics Ltd on the amount of FBT it is required to pay for the 2015/16 year:

 

a. using the statutory formula method

b. using the operating cost method.

 

2): How would your answer to (1) differ if Claire was overseas for all of March 2016 and left the VW Golf convertible garaged at her employer’s premises during that period? 

Claire Goodtimes is employed as the Marketing Consultant with Promenade Cosmetics Ltd. Her salary package included being provided with a car. On 1 September 2015, Promenade Cosmetics Ltd purchased a red VW Golf convertible costing $63,000 (including GST) for her. The car was garaged at Claire’s private residence throughout the 2015/16 FBT year. The car was fully maintained by the company, except that Claire was expected to contribute $1,000 a year towards the cost of petrol. During this period, Promenade Cosmetics Ltd incurred the following expenditure (all GST inclusive) on the vehicle:

 

 

Registration and insurance $1,800 Petrol $3,600

Repairs and maintenance $1,500

Windows tinted prior to on delivery $2,800

 

 

Claire maintained a log book for 12 weeks which recorded the following:

 

Travel to visit customers from office and return 10,000 kms

Travel to office from home and return 3,000kms

Family holidays 2,000kms

Weekend use 3,000kms

total:18000kms

 

1): Advise Promenade Cosmetics Ltd on the amount of FBT it is required to pay for the 2015/16 year:

 

a. using the statutory formula method

b. using the operating cost method.

 

2): How would your answer to (1) differ if Claire was overseas for all of March 2016 and left the VW Golf convertible garaged at her employer’s premises during that period? 

Claire Goodtimes is employed as the Marketing Consultant with Promenade Cosmetics Ltd. Her salary package included being provided with a car. On 1 September 2015, Promenade Cosmetics Ltd purchased a red VW Golf convertible costing $63,000 (including GST) for her. The car was garaged at Claire’s private residence throughout the 2015/16 FBT year. The car was fully maintained by the company, except that Claire was expected to contribute $1,000 a year towards the cost of petrol. During this period, Promenade Cosmetics Ltd incurred the following expenditure (all GST inclusive) on the vehicle:

 

 

Registration and insurance $1,800 Petrol $3,600

Repairs and maintenance $1,500

Windows tinted prior to on delivery $2,800

 

 

Claire maintained a log book for 12 weeks which recorded the following:

 

Travel to visit customers from office and return 10,000 kms

Travel to office from home and return 3,000kms

Family holidays 2,000kms

Weekend use 3,000kms

total:18000kms

 

1): Advise Promenade Cosmetics Ltd on the amount of FBT it is required to pay for the 2015/16 year:

 

a. using the statutory formula method

b. using the operating cost method.

 

2): How would your answer to (1) differ if Claire was overseas for all of March 2016 and left the VW Golf convertible garaged at her employer’s premises during that period? 

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