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  • C – Loans granted

    A loan fringe benefit arises where you provide a loan to an employee and charge a low rate of interest (or no interest). Item C is the number of loans you made that gave rise to taxable fringe benefits and the taxable value of those benefits.

    Therefore, do not show the amount of the actual loans in the 'Gross taxable value (a)' column.

    Example 12: Taxable value of loan fringe benefits

    You are a retail business and lend an employee $20,000. You did not charge interest and the employee made no repayments during the FBT year.

    The calculation based on the statutory (or benchmark) interest rate that applies from 1 April 2016 is:

    $20,000 x 5.65% = $1,130

    You would write at item 23:

    Example 12: Taxable value of loan fringe benefits

    End of example
    Last modified: 22 Mar 2017QC 51524