Page 57 - Taxation F6 - Income From Employment
P. 57
Income from Employment
Fringe
• Low – interest debts
• A taxable benefit arises when an employee is
offered a free interest loan by the employer for
interest that is lower than the official rate.
• Official rate of interest =Repurchase rate + 100
basis points.
• Cash equivalent=Interest on the loan-official rate
of interest.
• If the employee uses the loan in the production of
income the interest is deductable.
57
