Section CX 5 — Income Tax Act 2007: Relationship with exempt income

CX 5 Relationship with exempt income Exempt income not fringe benefit (1) To the extent to which a benefit that an employer provides to an employee in connection with their employment is exempt income, the benefit is not a fringe benefit. Exclusions (2) Subsection (1) does not apply to— (a) a payment of a premium on a life insurance policy that is excluded from being expenditure on account of an employee under section CE 5(3)(f) to (i) (Meaning of expenditure on account of an employee): (b) an allowance that is exempt income under section CW 17 (Expenditure on account, and reimbursement, of employees) to the extent to which it is made to enable the employee to provide a benefit to another person. Exempt cash payment not fringe benefit (3) To the extent to which a benefit that an employer provides to an employee in connection with their employment would have been exempt income if it had been paid in cash, the benefit is not a fringe benefit. Exclusion (4) Subsection (3) does not apply to interest, dividends, or an allowance under subsection (2)(b). Defined in this Act: dividend , employee , employer , employment , exempt income , expenditure on account of an employee , fringe benefit , interest , life insurance policy , pay , premium Compare: 2004 No 35 s CX 5