1. On January 2017, Tom received a job offer from XYZ Inc. Tom was very happy with the offer as in addition to the starting salary of $120,000 the company also provided the use of a company car and Tom was eligible for a low interest employee loan. Tom accepted the offer of employment from XYZ Inc. and also accepted the use of the company car. It is now March 2018, Tom has received his T4 to prepare his personal tax return for 2017. Tom is upset and confused as his taxable income is $135,000 and he was expecting that his income would be $120,000 as per the starting salary. He is very upset as he has to pay income taxes on the extra $15,000 of employment income and he does not understand why. Please provide clarity to Tom so he understands why he has to pay additional taxes.