Alan is an employee at ABC Pty Ltd (ABC). He has negotiated the subjoined compensation bundle delay ABC: • hire of $300,000; • Payment of Alan's variable phone score ($220 per month, including GST). Alan is lower a two-year narrow whereby he is required to pay a urban sum each month for unbounded exercitation of his phone. Alan uses the phone for work-related purposes solely; • Payment of Alan's children's instruct fees ($20,000 per year). The instruct fees are GST unconditional.
ABC to-boot granted Alan delay the ultimate variable phone handset, which absorb $2,000 (including GST).
At the end of the year ABC hosted a dinner at a topical Thai restaurant for all 20 employees and their partners. The aggregate absorb of the dinner was $6,600 including GST.
(a) Advise ABC of its FBT consequences arising out of the over notification, including computation of any FBT jurisdiction, for the year ending 31 March 2017. Assume that ABC would be entitled to input tax credits in harmony to any GST-inclusive acquisitions. (b) How would your vindication to (a) dispute if ABC solely had 5 employees? (c) How would your vindication to (a) dispute if clients of ABC to-boot fertile the end-of-year dinner?