This presentation explains the type of fringe benefit provided by Acto to Jacob and how it gives rise to a car fringe benefit. It also discusses the taxable value of the fringe benefit and the consequences for Acto and Jacob under Taxation Law. As Jacob has not maintained any log book for car expenses, the statutory method has been considered to calculate the fringe benefit. The taxable amount of the car fringe benefit amounted to $10,604.56 for Acto. The grossed up taxable amount of the car benefit would appear on the employee payment summary during the income year.