How can I calculate whether a car fringe benefit is a minor benefit?
Posted May 11th, 2009 by admin 1 Comment »
anonymous asked:
I was wondering how to determine whether a car benefit provided to an employee is minor because the tax ruling on this tends to contradict itself. It says to use notional taxable value as if it was a residual benefit, but then continues on to say that we can use the cents per kilometre (which should only be used for a vehicle other than a car) or the operating cost method.
I understand that if it is classified as a minor benefit it is exempt and in turn included as business use when calculating the taxable value of the benefit using either operating cost or statutory cost method.
http://www.realfreshfood.com/blog/
I was wondering how to determine whether a car benefit provided to an employee is minor because the tax ruling on this tends to contradict itself. It says to use notional taxable value as if it was a residual benefit, but then continues on to say that we can use the cents per kilometre (which should only be used for a vehicle other than a car) or the operating cost method.
I understand that if it is classified as a minor benefit it is exempt and in turn included as business use when calculating the taxable value of the benefit using either operating cost or statutory cost method.
http://www.realfreshfood.com/blog/