Page 69 - P6 Slide Taxation - Lecture Day 3 - VAT Part 1

Income from Employment

Allowances

• Anti-avoidance

• It prevents an employee from letting his car to the

employee and getting the right of use of the car.

• The rentals paid to the employee are deemed to be

part of the allowances hence

• The rentals are not deemed to be received by the

taxpayer and the deductions are not deemed to be

incurred by the taxpayer hence are not deductible.

• Example page 367

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