Section CX 33 — Income Tax Act 2007: Goods provided at discount by third parties

CX 33 Goods provided at discount by third parties When this section applies (1) This section applies when an employer and a person who is not associated with the employer have an arrangement through which goods are provided by the person at a discount. When not fringe benefit (2) A discount provided by the person to an employee in a group of employees is not a fringe benefit if— (a) the person offers a discount to a group of persons that— (i) negotiates the discount on an arm’s-length basis; and (ii) does not include the group of employees; and (iii) is comparable in number to the group of employees; and (b) the discount offered to the group of employees is the same or less than the discount offered to the group described in paragraph (a). Defined in this Act: arrangement , associated person , employee , employer , fringe benefit Compare: 2004 No 35 s CX 27B