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  • taxable benefit and support

    I have a job that provides me with a company vehicle.
    I put in my own gas for my personal use.
    There is a taxable benefit on my paystub every month for $300 ($3600 per year) and an "auto usage" deduction of $28 per month ($336 per year)
    In the year that the vehicle gets traded in, I also get dinged a taxable benefit too. Not 100% sure why, it just shows up.

    Anyway, both of these items have been used in the calculation of a final Child Support order.
    I have been paying temporary Spousal Support by agreement for about 15 months.
    Trial is scheduled for Nov. 2010

    Just got the ex's final Trial Management Affidavit's and she is asking to have my income imputed at a level of $20,000 more than I am currently claiming (actual income plus the benefits)
    The CRA is getting their pound of flesh for this benefit, now she thinks that she should too.
    Her contention is that the benefit is worth more to me than the $4,000 per year I currently claim.

    I have been reviewing case law and all I can find seems to talk about people that are self employed or work for family business were their income levels are "suspiciously" low and they get a vehicle or other beneifts.
    This is not the case with me.

    Any thoughts?

  • #2
    Do you get the company vehicle in lieu of wages? For example, I myself have a job with a company vehicle. However my Taxable Benefit is much higher, approx. double, and I do pay my own gas as well. I decided to take this instead of taking an allowance, which would have been approx 300.00 per month. I don't pay child support, nor no I receive any, however, I would bet that it is and should be IMO, included as income.
    Be careful with the rates used. There is a standby charge, which is just for having use of the vehicle 365 days a year, and a usage charge, where they charge per km's, which is for people who get their gas paid as well.
    Make sure you receive something from your employer, as the court may assume that your gas is paid as well.

    Comment


    • #3
      The benefit might be worth more than the 4 you are claiming but can't see it being equivalent to about 20 they are seeking. Out of curiosity, Who pays for insurance and wear and tear maintenance?

      Comment


      • #4
        How often does the car get replaced? Even if evey 4 years you're benefit at $4K/year is low. Get the actual operating costs from your accounting department and use that, along with a realistic % of business use.

        You will probably find that the real benefit is around $8-10K.

        On the other hand her outrageous claim of $20K/year is just that.

        Like so many claims in (un)civil law, this will degenerate into a negotiated settlement.

        Comment


        • #5
          So in response to the questions....

          The company I work for is essentially a Sales and Marketing company. We have sales reps and sales managers. I am management and like all the management in the company, I get a company vehicle. It is not in lieu of salary. My salary might be considered on the low side because of the lack of regular increases over the years due to the smaller size of the company and the issues with the economy and our particular industry. I have good benefits and a certain amount of flexibility with schedule that would make up for any financial short comings.

          The insurance and any repairs (new tires, brakes etc) are paid for by the company. I pay for any personal gas that is required for personal use. My girlfriend has a larger personal vehicle that we normally would use due to the number of kids we have between us.

          Due to the milage that is put on the vehicle, it gets replaced every 2 years or so. That is not unusual within my company. When the car is traded in, I do get a tax hit on that particular year because of the value remaining on the lease and the value of the car at trade in. So some years the tax hit has approached the $10,000 mark.

          The company has always set the benefit amount. I was not asked about it.

          I also get free product samples from the company so it cuts down on my weekly household expenses. I suppose I should add that into my salary. The company also provides toilet paper at the office that I don't have to worry about. There is a coffee pot in the kitchen and bottled water in the fridge. That has to be worth a couple of bucks a month too. Company provides me with a laptop. I bring it home to use at night, but sometimes my kids use it and I use it for personal use.

          I don't mean to sound petty, but at what point does it stop? I have been with the company for 14 years. I have been fairly paid for the job that I do. I get a company vehicle to allow me to perform my job. That vehicle is driven to and from work. I use it occasionally on the weekends and for grocery shopping etc, for which I pay a taxable benefit.

          Sorry, just feeling like someone's personal piggy bank again.

          Comment


          • #6
            So if you are expected to S4 dollar bills...where does the ATM card get swiped? I've always wondered about that.

            Comment


            • #7
              Originally posted by logicalvelocity View Post
              The benefit might be worth more than the 4 you are claiming but can't see it being equivalent to about 20 they are seeking. Out of curiosity, Who pays for insurance and wear and tear maintenance?
              I have just joined this site and am not sure how to post, however, I just completed a family trial wherein the Judge stated that Automobile benefits are not included in CS or SS calculations. This seemed odd to me. My Ex gets a company vehicle as a benefit in the job offer. Gas, Insurance and repairs are all paid for as a benefit to the job. I do not understand. Can someone tell me where the law on this is? I find information on expenses, but not benefits. Thanks you as I am appealing the decision.

              Comment


              • #8
                Originally posted by SheShe View Post
                I have just joined this site and am not sure how to post, however, I just completed a family trial wherein the Judge stated that Automobile benefits are not included in CS or SS calculations. This seemed odd to me. My Ex gets a company vehicle as a benefit in the job offer. Gas, Insurance and repairs are all paid for as a benefit to the job. I do not understand. Can someone tell me where the law on this is? I find information on expenses, but not benefits. Thanks you as I am appealing the decision.
                I live and work downtown and have essentially 0 transportation expense. Coburg (I presume) lives and works a fair distance and travels a lot. Say we earn the same salary. He gets a car to help him with transportation, I don't pay for transportation. Which one of us should pay more for CS and why?

                My buddy Igor gets a Mercedes from the company, and my buddy Xing gets a Yaris. Should one of them pay more CS? Why? They can't cash in the car and spend it on anythng else.

                If someone pays for basic transportation it's going to cost them $0 to walk, $500 for a bicycle, $1300 for a Metropass, and probably the low end for a car would be around $5000 (minimum insurance, short trips/low gas and depreciation on a trade-in every 4-5 years - correct me if I'm way off.) What you are really talking about is calculating CS based on income after personal expenses. Except you only want to do this if it works out in your favour, if your ex was paying for his own car, I'm sure you would prefer it be calculated according to his gross. You are appealing just for the auto expense? Which will make a difference of how much to his gross, and how much child support? What does he get, a Lamborgini?

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                • #9
                  You do present from a different point of view. I must also pay for insurance, gas, repairs and the vehicle for our disabled son. Since he does not have to pay these things and I have to, this puts us on unequal footing with regards to finances when calculating disposable income.

                  Believe me, I would not waste the court's time if this was the only issue to appeal about. He doesn't drive a lamborgini and we were married for 28 years as a traditional family. You don't just throw away the person, male or female who helped you get to where you luckily are today. Thanks.

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                  • #10
                    Originally posted by SheShe View Post
                    I must also pay for insurance, gas, repairs and the vehicle for our disabled son. Since he does not have to pay these things and I have to,
                    What transportation does he use when with your son?

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                    • #11
                      None, he has not seen our son in over 1 1/2 years by his own choice. When he left the family, he really left the family behind unfortunately.

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                      • #12
                        That absolutely sucks. But, as you say

                        Originally posted by SheShe View Post
                        Judge stated that Automobile benefits are not included in CS or SS calculations.
                        Might be better off looking at all other reasonable things to include in an appeal that aren't as debatable as this one unless there is a fairly clear ruling that you can find in another case.

                        Comment


                        • #13
                          Thank you. Appeal has to be on law and whether the Judge did not apply the law correctly or did not follow proper procedure and that definitely happened from my perspective. Three Judges on the Appeal will tell me if I am out to lunch on that. Incidentally, the judge for my case is fairly new and already has another appeal pending for the same issues as I have. Suspicious...

                          Comment


                          • #14
                            SheShe,
                            Just had my trial last week.
                            My ex tried to get the judge to impute income to me for several reasons.
                            All were denied.
                            One was for my company vehicle.
                            I currently pay tax on my personal benefit from the vehicle.
                            She tried to argue that it was not enough and went to a car dealer to find out what a lease would be.
                            She had my company expense reports for the last couple of years showing my gas and maintenance costs.
                            I quoted a recent case of Rivard v. Rivard in which the judge said that he would not access any further income due to "guess" work as a trial required proof.
                            Our judge quoted that back to us when he denied her claim.
                            I don't know what "evidence" you may have, but it seems to becoming much more difficult to get this claim through.

                            Mess, don't know if you will read this, but I used your example of a person living closer to work and not having a car. Judge seemed to like it....thanks

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                            • #15
                              Coburg, thanks, I guess I didn't understand some of the stuff properly, so I am glad to have clarification so I don't flog a dead horse so to speak.
                              Well, it sounds like you weren't trying to hide anything and the Judge saw that. I'm glad to hear it worked out.

                              Comment

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