Answer to Question #80001 in Finance for Hugh Heron

Question #80001
Question-The activity statement allows a business to calculate obligations, allowing a single payment or refund for each reporting/ payment period, across the taxes.

For example, if in a quarterly reporting/ payment period, a business had:

a GST credit of $15,000
a PAYG instalment liability of $6,000
a PAYG withholding liability of $1,500, and
an FBT liability of $1,000
Would the business need to make any payments?

Answer-When it comes time for the business to make payments for the financial year they will need to make one payment of fringe benefit tax which is about $1,000 and the lodgement for it is quarterly. Fringe benefit tax is a separate tax from income tax.
But when it comes to the other amounts for the financial year their will be no other payments that need to be made.

Feedback-Have not understood the use of the BAS, the FBT will be recorded on this BAS and have not answered id payment is required and why
1
Expert's answer
2018-08-22T11:12:08-0400
Business must pay FBT and separate Income Tax. FBT based on the initial data should be $1,000.

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