Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You know from experience that the company pays $ 0 . 7 0 per kilometre as the mileage rate for the use of employee -

You know from experience that the company pays $0.70 per kilometre as the mileage rate for the use of employee-owed cars. You noticed that some of the employees are travelling a lot, with two employees driving 6,000 km in the year.
Determine the tax treatment. Show all calculations and mention how much is not deductible.
Allowance for an Automobile
Max allowance that can be deducted by an employer is $0.66 for first 5,000 km, and $0.62 for each additional km (2023). Limitation applies only if allowance is tax-free. If allowance is taxable, the employer can deduct the full amount if reasonable.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The ASQ Certified Food Safety And Quality Auditor

Authors: Steven Wilson

4th Edition

1951058186, 978-1951058180

More Books

Students also viewed these Accounting questions

Question

=+21.1. Prove ( e-ux2 /2 dx =1-1/2. ,00 12 T = 00

Answered: 1 week ago

Question

4. Identify the challenges facing todays organizations

Answered: 1 week ago