Section CX 19 — Income Tax Act 2007: Benefits provided instead of allowances

CX 19 Benefits provided instead of allowances When not fringe benefit (1) A benefit that an employer provides to an employee in connection with their employment is not a fringe benefit to the extent to which it removes the need that would otherwise exist for the employer to pay the employee an allowance of 1 of the following kinds: (a) an allowance that, if it had been paid,— (i) would have been exempt income under section CW 17 (Expenditure on account, and reimbursement, of employees); and (ii) would have been paid for reasons other than to enable the employee to provide a benefit to another person; or (b) an allowance that reimburses the employee for transport costs that— (i) would have been incurred both in connection with their employment and for the benefit of the employer in travelling between home and work; and (ii) would have been attributable to any 1 or more of the factors set out in section CW 18(3) (Allowance for additional transport costs); or (c) an amount that, if it had been paid, would have been exempt income under section CW 17B (Relocation payments). Temporary change in workplace (2) A benefit that an employer provides to an employee is not a fringe benefit if it— (a) is in substitution for an allowance described in subsection (1)(b); and (b) is brought about because the employee has a temporary change in their place of work while in the same employment; and (c) reimburses the employee for transport costs that would have been incurred relating to travel by 1 or more of the employee’s spouse, civil union partner, or de facto partner, and relatives for the purpose of visiting the employee in the temporary place of work; and (d) has a value that is no more than the amount that would be provided under the allowance described in subsection (1)(b). Defined in this Act: employee , employer , employment , exempt income , fringe benefit , pay , relative Compare: 2004 No 35 s CX 17 Section CX 19(1)(b)(ii): amended (with effect on 1 April 2008), on 6 October 2009, by section 53 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34). Section CX 19(1)(c): added (with effect on 1 April 2008), on 6 October 2009, by section 53 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).