Study Notes: Employer-provided car

Question 1

Taxable benefits on employer-provided vehicle

Answer 1

• standby charge
• operating costs
• notification in writing before the end of the taxation year if employee elects to have the operating benefit calculated as 1/2 of the standby charge

Question 2

Travelling allowances

Answer 2

• For employees involved in sales or negotiating contracts, a reasonable travelling allowance in not included in income.
• If the allowance is not reasonable the allowance is included in income and actual travel expenses can be deducted. This is advantageous if the allowance is not enough to cover the actual expenses
• Reimbursement of business expenses in not taxable.