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  • Working out the taxable value of a car fringe benefit

    To calculate the taxable value of a car fringe benefit, an employer must use either:

    • the statutory formula method (based on the car’s cost price), or
    • the operating cost method (based on the costs of operating the car).

    You can choose whichever method yields the lowest taxable value, regardless of which method you used in a previous year. However, if you've not kept the required documentation for the operating cost method (such as log books), you must use the statutory formula method.

    See also:

    Last modified: 29 Mar 2019QC 43854