Tax & Legal

The Supreme Tax Court has held that the payment by the employer of a fine levied on an employee cannot be for a valid business reason and is therefore a taxable benefit subject to payroll withholding tax.

The Supreme Tax Court has held that the taxable benefit from the provision of a chauffeur-driven company car to enable an employee to get to work includes the value of the chauffeur’s services.

The Supreme Tax Court has held that permission to use a company car privately is, of itself, a taxable benefit, even if there is no actual private use. The benefit can only be valued at zero on the basis of a proper mileage log. On the other hand, there is no presumption of private use where this is prohibited, even if an infringement of the prohibition would be without labour law or other consequences for the employee. The court also held that golf club membership fees are a private benefit, even if the membership was taken out for business reasons.

The Supreme Tax Court has reaffirmed its position that the taxable benefit from using a company car to go to work depends on the actual use of the car. By contrast it now has doubts on the provision of a chauffeur as a benefit.