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please someone make me clear . I am so confused in terms like ‘benefits assessable , amounts taxable etc ..
helen is provided with a computer by her employer for private use, which costs 800.
so if we do 800*0.2=160 . what is this value? is 160 taxable benefit? is it added with employment income or what ?in next question, B’s employer X ltd purchased a dishwasher for his use on 1 june 2013, costing 600. on 6 april 2014, X ltd gave dishwasher to B.. its market value then being 150.
here, 600*0.2*10/12 =100 is deducted from 600 and 500 is termed as taxable benefit.like in 2nd question, if present market value was given in ques 1 for example 300, do we have to deduct 160 from 300?
In the Helen computer example, 160 would be the irreparable benefit which would be treated as non-savings income in her tax computation.
In the second question regarding the dishwasher market value comes into play since you are trying to compute benefit of transfer of good into ownership not benefit of being able to use a good like the previous example with Helen and the computer.It will also be treated as non-savings income in the relevant tax computation.
It is this amount because the relevant amount assessed on employee when employer gives an employee a good in this way is the higher of the market value when ownership is given to employee minus any contribution made by employee or the market value of good when first made available to employee minus any amounts previously assessed to tax on the item and minus any amount paid by employee for asset.
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