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Hi,
I am wondering if someone could enlighten me please.
I am doing Irish Taxation and there is 2 test questions. I am self studying and I hope someone knows the answer here.1. Employer pays for employees internet where employee uses 75% of it for personal use. In the solution this is considered as a gift.
cost is 300, personal use 225 this is below 500 small gift so 0 taxable.2. Employer gives and old used TV to employee. TV was bought in 2011 for 1000 and market value in August 2015 is 300.
Solution: 300 was added to income as BIK.My question is why the internet is considered as a gift and not BIK and the why the TV is considered as a BIK and not a gift. I couldn’t find any explanation in my text book and nothing in the revision kit in relation to it.
I would be very grateful if someone could explain this please 🙂
Many thanks,
Katalinka
the irish tax rule has provision of goods and assets provided to employee. Q2, the provision of TV to employee, falls in that category thus it should be included in taxable income. Given that it is second hand (acquired in 2011), the taxable income will be the market value of the goods transfered.
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