Calculate the taxable value of the fringe benefit using the statutory formula in the case context

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Question - A. Calculate the taxable value of the fringe benefit using the statutory formula in the following case context: Nancy provided her employee (William) with the use of a Toyota Pajero car 216 days during the Fringe Benefit Tax year. During the period, the car travelled 12,000 km. Nancy purchased the car last year for $65,000. William contributed $2,000 towards the cost of running the car and has provided Nancy with relevant documentation.

B. Rory is a staff of a furniture manufacture company. His employer allowed him to purchase an office table for $ 1,200. The table would ordinarily be sold to customers for $1,800. Calculate the taxable value of the fringe benefit.

Answer -

A. According to formula, determination of outcome


A=Car base value=65,000

B=Normal applicable percentage=20%

C=The number of total days required in a year FBT when a car is utilized as a private car=216

D=The number of total days required in a year FBT=365

E=contribution of an employee=2000





Above calculation is based on several variables that are actively related with determination result against given problem. However, there are five several variables such as- A, B, C, D and E that are effective to calculate results. According to, information provided Nancy purchased a car with $65,000 last year, Toyota Pajero car required 216 days during Fringe Benefit Tax year respectively, percentage is 20%, Total required days 365 and William contributed $2000 for this car. Fringe Benefit Tax is a specific type of tax that is required to figure out several positive impacts, benefits and importance of several employees related to different organizations. Addition of a certain amount of compensation is effective for FBT for a particular year. Some case study for Nancy for purchasing a car is totally dependent on concept of FBT that is profitable for all relevant cases. Overall, calculate and evaluate all things 5693.1507 is actual result for this specific case study. Case study of Nancy and William for purchase a car FBT is advantageous and essentially functional primarily. B.Actual value of table in time of purchase is $1200.(Moges, 2020)

Purchased table is effectively considered as a particular domestic material specifically. In order to, several house related pieces are considered as a kind of property that is a main classification of "private fringe benefit". However, "private fringe benefit" isdependent on selling and material to customers in standard value that can be related with trajectory of business generally.

Particularly that table is collected from Rory's employer, where actual net amount of provided tax is always less than actual price, lesser of cost where a certain amount of capital is required for purchaser coming from employer's side. Total price of a particular table for every customer is $1800, which is $500 more than actual price that was obtained by Rory's employer. Net taxable amount of that particular table would be total price of table for employer to gain property that is sufficient with lower value from accurate original price for a customer $500 that is payable. All over taxable value is decreased in amount of $500 for particular table selling by Rory's employer in a low value from actual amount of tax. Entire amount is decreased $500 from foot price. In order to, price is charged $0 for taxation value and amount of fringe benefits privately.

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