BBC Earthmovers Pty Ltd provides an employee with the use of a company car for each day of the FBT year ended 31 March 2020 and the employee is able to take this car home every night. The car cost $44,000 and was purchased on 1 April 2019. A log book has been kept showing that the work related use was 30% for the year. The various running costs, including the deemed depreciation and interest, amounted to $19,000. The employee paid the employer $5,200 for the use if this car for the year ended 31 March 2020. Calculate what the FBT liability of BBC Earthmovers Pty Ltd is in relation to this car fringe benefit provided for the FBT year ended 31 March 2020.

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The Answer of BBC Earthmovers Pty Ltd provides an employee with the use of a company car for each day of the FBT year ended 31 March 2020 and the employee is able to take this car home every night. The car cost $44,000 and was purchased on 1 April 2019. A log book has been kept showing that the work related use was 30% for the year. The various running costs, including the deemed depreciation and interest, amounted to $19,000. The employee paid the employer $5,200 for the use if this car for the year ended 31 March 2020. Calculate what the FBT liability of BBC Earthmovers Pty Ltd is in relation to this car fringe benefit provided for the FBT year ended 31 March 2020.

BBC Earthmovers Pty Ltd Provides an Employee with the Use