Fringe Benefits and Allowances

Question 1

What are fringe benefits?

Answer 1

Payments made to employees in a form other than cash

Question 2

What must be disclosed in IPR5 to claim travel allowance?

Answer 2

Vehicle cost
Vehicle make, model and year
VRN
Odometer at beginning of tax period
Odometer at end of tax period
Business kilometres travelled during year of assessment

Question 3

What are the 2 ways to claim the travel allowance?

Answer 3

1. Actual expenses - when accurate expenditure details are recorded
2. Actual business kilometres and deemed cost per km - when a logbook is kept of business km’s

Question 4

What is the value of a fringe benefit?

Answer 4

The cash equivalent value of the taxable benefit.