With respect to the determination of net employment income, which of the following statements is correct?

Question

Quizplus · Accepted Answer

Reasonable vehicle allowances are generally not included in income, as they are considered to be reimbursement for work-related travel expenses. However, it is important to note that unreasonable or excessive vehicle allowances may be subject to taxation. Option A is incorrect because expenses related to an allowance included on an employee's T4 may be deductible if they are incurred for work-related purposes. Option B is incorrect because only 50% of non-reimbursed meals are subject to taxation, not reimbursed meals. Option D is incorrect because some allowances (such as reasonable vehicle allowances) are not included in income, while some reimbursements (such as those for work-related expenses) are included in income.

With Respect to the Determination of Net Employment Income, Which