Question

Your organization is opening a new branch 150 kilometres northof the head office location and is anxious to attract skilledemployees from the head office location to the new facility. In anattempt to attract interest, employees willing to permanentlytransfer to the new location are being offered a home purchase loanto assist with the costs of the move. The General Manager has askedyou to prepare a memo explaining the the taxable benefit that couldarise when employee takes advantage of this offer.