And yet tax settings on company-car use can influence distances travelled, favour certain modes of (more polluting) transport and influence decisions on both housing location and vehicle choice, as well as contribute to traffic congestion, accidents, noise and other social costs. Most OECD countries do not tie their taxable benefits to the distance driven - which is one of the main factors of the discrepancy between actual and neutral tax settings (Roy, 2014). The countries that do so apply fixed per kilometre rates that fail to capture the benefit of additional fuel consumed by less-efficient vehicles.