Section CX 18 — Income Tax Act 2007: Benefits provided to associates of both employees and shareholders

CX 18 Benefits provided to associates of both employees and shareholders When this section applies (1) This section applies when— (a) a benefit provided to an associated person of an employee would be treated as a fringe benefit under section GB 32 (Benefits provided to employee’s associates) in the absence of section CX 4 ; and (b) the employer is a company; and (c) the associated person is also associated with a shareholder in the company; and (d) the associated person is not a company; and (e) the associated person is not a shareholder in the company; and (f) the benefit would be a dividend if provided to the shareholder. FBT rules apply, not dividend rules (2) The benefit is subject to the FBT rules and is treated as not being a dividend. Defined in this Act: associated person , company , dividend , employee , employer , FBT rules , fringe benefit , shareholder Compare: 2004 No 35 s GC 15(3), (4)