Question 1 (10 Marks)
Alan is an employee at ABC Pty Ltd (ABC). He has negotiated the subjoined reward lot with ABC: • stippurpose of $300,000; • Acceleratedment of Alan’s sensitive phone reckoning ($220 per month, including GST). Alan is subordinate a two-year reduce whereby he is required to accelerated a agricultural complete each month control unbounded custom of his phone. Alan uses the phone control work-related purposes simply; • Acceleratedment of Alan’s children’s develop fees ($20,000 per year). The develop fees are GST unhindered.
ABC too granted Alan with the extreme sensitive phone handset, which absorb $2,000 (including GST).
At the purpose of the year ABC hosted a dinner at a topical Thai restaurant control whole 20 employees and their partners. The sum absorb of the dinner was $6,600 including GST.
(a) Advise ABC of its FBT consequences arising quenched of the overhead knowledge, including computation of any FBT burden, control the year purposeing 31 March 2017. Assume that ABC would be entitled to input tribute credits in aspect to any GST-inclusive acquisitions. (b) How would your counter-argument to (a) be-unlike if ABC simply had 5 employees? (c) How would your counter-argument to (a) be-unlike if clients of ABC too cultivated the purpose-of-year dinner?