Jamie is a real estate agent working for ‘Houses R Us’real estate. As part of his employment contract, Jamie receives abase salary of $50,000 per annum plus 10% of the agency’scommission on sold properties where he has had a direct connectionwith the sale. He is also provided with a car, a Toyota Klugercosting $48,000. He is not required to contribute to the runningcosts of the car which total $13,500 per year and is allowedto use the car outside of work hours and on weekends.

Jamie's salary package also includes a laptop whichcost $2,300 and a mobile phone costing $1,200 per year. Hisemployer also reimburses his annual professional subscription of$550 and provides him with an entertainment allowance of $2,000 peryear.

Jamie was also lucky enough to achieve the highestsales for the previous six month period and was rewarded with ahigh tech home entertainment system worth $4,800.

‘Houses R Us’ also offer their staff loans of up to$100,000 towards purchasing their own house at a rate of 4% perannum. Jamie is considering taking up this offer to purchase hisfirst home.

Required
Advise Jamie and ‘Houses R Us’ of the taxation and FBT consequencesof these transactions. You are not required to calculate any FBTliability. should be presented like essay not more than 1500 wordsciting relevant cases and laws

In assessing your assignment the marker will expectyou to:

present an essay that is readable andcoherent;

use appropriate language, correct spelling andgrammar;

identify and analyse relevant issues;

explain and apply relevant cases, rulings andlegislation;

reach a sound and well-reasoned conclusion;

use appropriate referencing; and

demonstrate time management skills