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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 $ per kilometre as the mileage rate for the use of employeeowed cars. You noticed that some of the employees are travelling a lot, with two employees driving 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 $ for first km and $ for each additional km Limitation applies only if allowance is taxfree. If allowance is taxable, the employer can deduct the full amount if reasonable.
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