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Hi
In the clean co question, in ethics answer, the answer says something about taxable benefit.
Can you kindly clarify thatI am away for a few days and will reply on Monday when I can access the material you refer to.
If a company pays for something (in this case a professional service) on behalf of an employee (in this case a director) that is the employee’s personal expense – that payment is effectively additional remuneration and the benefit is taxable.
Yes the employee bears the tax (it is personal income tax) but in UK, for example, the employer must report benefits in kind to the tax authority so tax can be collected on the benefit. Under UK PAYE system the value of the benefit would be deducted from the employee’s standard personal allowance (currently £12.5k) so more tax will be deducted from the employee through the payroll.
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