Fringe benefits

Question 1

What is the value of Fringe benefit of getting to use a work vehicle?

Answer 1

1. Determined value of the vehicle (including VAT) X (3.25 if there is a maintenance plan, 3.5 If there is no maintenance plan)
2. Multiply for months of benefit experienced
3. Remove the portion of use relating to business
4. Remove any benefits paid for that relates to private use(because this amount calculated is what benefits you get from work that are for private use)

Question 2

what are the income tax implications for your employee and the company when granting your employee an interest-free loan in order to particpate in the employee share scheme?

Answer 2

For the employee
Section idk of the ITA
- the loan is immediately repayable and so it is not going to be included in gross income

para 2(f) and para 11(5) of the 7th sch of the ITA
- the loan is a fringe benefit and therefore the difference between the market related interest and the no interest will be the cash value of the benefit that will be included in the gross income of the employee
- this loan can be granted by the business or an associated institution of the business

Section 23(f)
- the interest however cannot be deducted because j;wberpoi4w;t31

Section 1 of the ITA
- the purchase of the shares is also not an avaliable deduction because the purchase was capital in nature

• there is other information that is relevant to the share incentive scheme, look at the other note

for the Company
- idk fam

Question 3

How do you calculate the value of the fringe benefit of a travel allowance?

Answer 3

• work out the total allowance
• deduct the work portion idk?