An employer in New Brunswick leased an automobile on March 1, 20X7, for $1,200 per month plus 15% HST. The automobile is used by an employee for employment and personal purposes. In 20X7, the employee drove 30,000 km with approximately 30% of this amount for employment use. The employer files HST returns annually and has a calendar fiscal year.

Determine:

(a) The employer’s maximum input tax credit for the lease expense

(b) The employee’s taxable benefit

(c) The employer’s HST liability on the employee’s taxable benefit