Section RD 27 — Income Tax Act 2007: Determining fringe benefit values

RD 27 Determining fringe benefit values What sections RD 28 to RD 53 do (1) Sections RD 28 to RD 53 set out the rules for determining the value of a fringe benefit provided by an employer to an employee in connection with their employment. The taxable value of a fringe benefit when an employee pays an amount for receiving the benefit is dealt with in sections RD 54 to RD 57 . When value cannot be ascertained (2) If, under sections RD 28 , RD 29 , and RD 33 to RD 41 , the value of a fringe benefit cannot be ascertained, the value is the market value or otherwise as the Commissioner determines. Meaning of market value (3) In subsection (2), market value means the price, at the time at which the goods or services were provided to the employee, for which the goods or services would normally be sold in a sale— (a) in the open market in New Zealand; and (b) freely offered; and (c) made on ordinary trade terms; and (d) to a member of the public at arm’s length. Defined in this Act: amount , Commissioner , employee , employer , employment , fringe benefit , market value , New Zealand , pay , Compare: 2004 No 35 ss ND 1A(1) , ND 1L