Fringe Benefits Taxation
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Questions and Answers

What is the condition for the education of an employee to be considered a legitimate business expense?

  • The education is connected with the employer's business and the employee is obligated to remain in the employ of the employer for a certain period of time (correct)
  • The employee is paying for their own education
  • The employer is paying for the education of the employee's dependents
  • The education is provided through a competitive scheme under a scholarship program of the employer
  • What is the maximum amount of lodging cost that can be considered a legitimate business expense for foreign travel?

  • $400/day
  • $300/day (correct)
  • No limit
  • $200/day
  • What is the percentage of the cost of a first-class ticket that can be considered a legitimate business expense for foreign travel?

  • 30% (correct)
  • 40%
  • 50%
  • 20%
  • What type of insurance contribution is considered a legitimate business expense?

    <p>Contribution to a group insurance of the employees</p> Signup and view all the answers

    What is the condition for an employer's payment for an employee's education to be considered a legitimate business expense?

    <p>The education is provided through a competitive scheme under a scholarship program of the employer</p> Signup and view all the answers

    What type of fees are not considered legitimate business expenses?

    <p>Social and Athletic Club Fees</p> Signup and view all the answers

    What happens to the interest on loans if the interest rate is less than the market rate?

    <p>The difference between the market rate and the interest rate is considered a legitimate business expense</p> Signup and view all the answers

    What type of travel expenses are not considered legitimate business expenses?

    <p>Travel expenses for the employee's family</p> Signup and view all the answers

    What type of expenses are considered legitimate business expenses?

    <p>Association dues</p> Signup and view all the answers

    What is the condition for the cost of insurance borne by the employer to be considered a legitimate business expense?

    <p>The contribution is pursuant to existing law</p> Signup and view all the answers

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