Problem 3 Author's Note: This problem addresses the GST/HST implications for Problem 13, Chapter 3. The GST HST solution may be used in conjunction with the solution in Chapter 3 or as a separate assignment. Mr. Ned Newell is employed by Snoopy-Snacks Lid. (a Canadian-controlled private corporation). As of February 15, 2023, Ned was promoted to vice president of sales due to his hard work negotiating poppy snack contracts on behalf of the company. This promotion required Ned to relocate from the Toronto office of Snoopy-Snacks Lid, to its Victoria, British Columbia office. Ned has provided you with the following information regarding his 2023 income and expenses. He requests your assistance in determining his 2023 employment income for tax purposes. Payroll details: Gross salary $125,000 Less: Income taxes $45,000 Canada Pension Plan contributions (incl. enhanced portion of $631) 3,754 Employment Insurance contributions 953 Registered pension plan commbution: defined benefit 6, 750 Group income protection premiums paid 120 Group term life insurance premiums paid 180 56.803 $ 65.194 Employer-paid amounts and fringe benefit paid by Snoopy-Snacks Lid.: Dental plan premis - paid to Star Insurance Company $ 245 Group term life insurance premiums 90 B.C. provincial health care premiums 640 Group income protection premiums 400 Monthly allowance to cover travel and automobile expenses (based on a flat monthly amount of $400 for travel and $400 for auto) 9.600 Travelling expenses for Ned and his wife to Bermuda for a sales conference. Ned's time was spent amending the conference but his wife was on 2,500 vacation the entire time. No HST was payable on the trip since it was outside of Canada. One-half of the expenses related to Ned and one-half to his wife A birthday gift (a watch) received while in Ontario (including HST). Snoopy-Snacks Lid. deducted the cost of this gift as a business expense 150 Outside financial counselling fees (including HST). The counselling firm indicated that 80%% of its fees relate to counselling for future retirement 2,568 while the remaining 20%% of its fees relate to tax preparation Other Information! 1. Snoopy-Snacks Lid provided Ned with some a that relates to his move from Torceno to Victoria The details of that assistance are set out below. (a) Ned purchased a new home in Victoria just prior to his move. However, he could not take possession of that home until April 30, 2023. Snoopy-Snacks Lid. paid Ned's rem for a Victoria apartment for the months of February through April 2023. The rent paid was $1,200 per month. (bj Ned and Snoopy Snacks Lid. agreed that he would receive reimbursement from Snoopy- Snacks Lid for one half of the loss realized by him on the sale of his Toronto home. Ned received $16 500 as a result of this agreement. () Ned received an a ce of $15,000 to cover his moving expenses. In addition to the above, Ned's employer agreed to reimburse him an amount equal to one quarter of his annual mortgage interest payment for the first five years of his mortgage on his new Victoria home. This was intended to compensate for higher real estate prices in Victoria For 2023, Ned received $2,000 under the terms of this agreement. 2. Ned had unlimited use of the company's private swimming pool. All management level employees are permitted to utilize this pool. The local private swimming pool charges annual fees of 51,800 per year before HST. 3. Ned had the following expenditures during 2023. Automobile operating expenditures Lease payments for 12 months ($850 a month including HST of 1236) (lease commenced July 1, 2022, for a period of three years; deducted lease costs $10.200 for 2021 were 54,585) Gasoline and oil 1 300 Insurance 1 050 Maintenance 150 Licence 120 Travelling expenditures Meals (consumed while out of metropolitan area for greater than 12 hours) 7 200 Accommodation 12 000Travelling expenditures Meals (consumed while out of metropolitan area for greater than 12 hours) 7_200 Accommodation 12 000 During 2023, Ned travelled a total of 36,000 kilometres, of which 22,500 kilometres were employment-related. The manufacturer's list price on his automobile was $33,000 before HST. - REQUIRED Consider the facts above. Ned would like you to compute the potential HST rebate in 2023 and the income tax consequences upon receipt of the HST rebate, While BC has both PST and GST, assume an HST me of 124% for this purpose