Section CX 10 — Income Tax Act 2007: Employment-related loans

CX 10 Employment-related loans When fringe benefit arises (1) A fringe benefit arises when an employer provides a loan to an employee. Exclusions (2) Subsection (1) does not apply to a loan made— (a) as an employee share loan: (b) under a share purchase scheme: (c) [Repealed] (d) as an advance of salary and wages, if,— (i) in the period for which the employer is required to forward a return to the Commissioner under sections RD 25 to RD 63 (which relate to fringe benefit tax), the total outstanding of such advances to the employee is no more than $2,000; and (ii) the contract of employment does not require the employer to make the advance. Loan owing (3) The employer provides a fringe benefit in a tax year in which the loan is owing. The circumstances in which a loan is owing include a case in which, under the arrangement for the loan, an amount is payable in the future, or would be payable in the future if a particular event happened, and the employee or an associated person is or would be liable to pay the amount. Defined in this Act: amount , arrangement , associated person , employee , employee share loan , employer , employment-related loan , fringe benefit , income , pay , share purchase scheme , tax year Compare: 2004 No 35 s CX 9 Section CX 10(2)(c): repealed, on 1 April 2011, by section 16(1) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109). Section CX 10 list of defined terms superannuation fund : repealed, on 1 April 2011, by section 16(2) of the Taxation (Annual Rates, Trans-Tasman Savings Portability, KiwiSaver, and Remedial Matters) Act 2010 (2010 No 109).