ACCT 2028 Winter 2024 Communication Assignment

Emilia Natashy

Emilia Natashy is employed full time by the Coco Cookie Company ("Coco") as the Director of Strategic Initiatives.

As part of her annual compensation, Emilia is provided with a $1,000 Enrichment Allowance.

Coco provides a list of approved items which qualify for the allowance. Emilia will be reimbursed upon submission of original receipts.

Emilia would like to minimize her tax liability related to the use of the allowance.However, she also notes that some items on the approved list would have more value to her than others. Emilia is in the top Federal and Provincial tax bracket for Ontario.

Required:

After reviewing the list of approved expenditures, prepare a memo to Emilia.

The memo should:

1. Explain the general principles of taxation of employment benefits.
2. Recommend the expenditures which would minimize the tax liability for Emilia.
3. Quantify the tax liability should Emilia not follow your recommendations.

Your communication should be appropriate for the audience. The grade for the assignment will be weighted 50% for technical accuracy and 50% for audience appropriateness.

Coco Cookie Company Approved expenditures for Enrichment Allowance

Educational advancement	Educational courses & related travel
Peer networking	Conferences & related travel
Memberships	Annual dues for professional organizations
Office wellness	Ergonomic office products - must be demonstrable ergonomic benefit
Resource materials	Print or electronic resources
Electronics	PC/Laptop, tablets, cellular phones - including accessories
Health	Fitness membership and home gym equipment

Note:

All expenditures must be relevant to employee responsibilities.

Employee will retain ownership of all products purchased under the Enrichment Allowance program.