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  • E – Expense payments

    An expense payment fringe benefit may arise in either of two ways:

    • where you (the employer) reimburse an employee for expenses they incur
    • where you pay a third party in satisfaction of expenses incurred by an employee.

    Example 14: Taxable value of expense payment fringe benefits

    You operate a real estate business and pay an employee's home telephone bill of $1,200 for the year ending 31 March 2017. On 31 March 2017, your employee provides you with a declaration stating that 60% of the bills are for business purposes and are, as a result, otherwise deductible. The other 40% of the calls are private calls.

    The calculation of the taxable value for the expense payment is:

    $1,200 x 60% = $720. $720 is otherwise deductible.

    $1,200 - $720 = $480 taxable value.

    You would write at item 23:

    Example 14: Taxable value of expense payment fringe benefits

    End of example
    Last modified: 22 Mar 2017QC 51524