Fields Ltd. provided Jala with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,450 paid for operating costs in the current year. The vehicle was purchased by Fields Ltd. three years ago at a cost of $48,000 (incl. GST). In the current year, Jala drove 27,000 kilometres; 12,500 kilometres were personal, and 14,500 were for employment purposes. On October 1 of the current year, Jala purchased 1,400 shares of Fields Ltd, under a stock option plan. Fields Ltd. is a Canadian public corporation. The following information is provided. Stock Options Option granted on Jan. 1 of the prior year, FMV = $14 per share Option price = $14 per share Option exercised on July 1 of the current year, FMV = $20 per share * Note: On December 31, Jane continues to hold the 1,400 Fields Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Victoria when Jala attended a five-day conference for accountants. Fields Ltd. reimbursed her for the full cost of $5,800, of which $2,500 (including GST) was for expenses she incurred for her mother. Required: Calculate the total amount of taxable benefits for Jala in the current year and provide appropriate references to the ITA or rationale. Taxable Benefits Amount ITA section List the benefit, identify the amount, and quote the ITA section OR explain your rationale. Taxable benefits can be found in ITA section 6 and 7. Benefit Amount ITA Section Reference or rationale 00 OWN 8 Total taxable benefits as per section 6 & 7 Fields Ltd. provided Jala with a motor vehicle for the entire year, and the company also paid for all operating costs for the vehicle, with $5,450 paid for operating costs in the current year. The vehicle was purchased by Fields Ltd. three years ago at a cost of $48,000 (incl. GST). In the current year, Jala drove 27,000 kilometres; 12,500 kilometres were personal, and 14,500 were for employment purposes. On October 1 of the current year, Jala purchased 1,400 shares of Fields Ltd, under a stock option plan. Fields Ltd. is a Canadian public corporation. The following information is provided. Stock Options Option granted on Jan. 1 of the prior year, FMV = $14 per share Option price = $14 per share Option exercised on July 1 of the current year, FMV = $20 per share * Note: On December 31, Jane continues to hold the 1,400 Fields Ltd. shares since she anticipates they will appreciate in value. In the current year, her mother travelled with her to Victoria when Jala attended a five-day conference for accountants. Fields Ltd. reimbursed her for the full cost of $5,800, of which $2,500 (including GST) was for expenses she incurred for her mother. Required: Calculate the total amount of taxable benefits for Jala in the current year and provide appropriate references to the ITA or rationale. Taxable Benefits Amount ITA section List the benefit, identify the amount, and quote the ITA section OR explain your rationale. Taxable benefits can be found in ITA section 6 and 7. Benefit Amount ITA Section Reference or rationale 00 OWN 8 Total taxable benefits as per section 6 & 7
