Page 93 - P6 Slide Taxation - Lecture Day 3 - VAT Part 1
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Income from Employment
Fringe
• Free and cheap services
• A taxable benefit arises when a service is offered to an
employee at the employers expense for no consideration or
consideration that is less than:
• Amount of the lowest fare or
• Costs of rendering the service.
• Examples a business who is engaged in the business of
conveying passengers for reward by sea or air grants a
travel facility to enable an employee or relative to travel to
a destination outside SA for private or domestic purposes.
• Cash equivalent=lowest fare value /cost of rendering the
service– consideration paid by the employee.
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