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
Expert's answer
Business must pay FBT and separate Income Tax. FBT based on the initial data should be $1,000.

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