Section RD 33 — Income Tax Act 2007: Subsidised transport

RD 33 Subsidised transport Percentage of highest public fare (1) The value of a benefit that an employer provides to their employee in subsidised transport is 25% of the highest fare the employer charges the public for the equivalent transport in terms of class, extent, and occasion. This subsection is overridden by subsection (2). When benefit provided under arrangement (2) Despite section CX 2(2) (Meaning of fringe benefit), if the fringe benefit is provided under an arrangement with a third person, the value of the benefit is determined under subsection (3). Percentage or actual payment (3) If a third person provides the employee with subsidised transport under an arrangement with their employer, the value of the benefit is the greatest of— (a) 25% of the highest fare the employer charges the public for the equivalent transport in terms of class, extent, and occasion; and (b) 25% of the highest fare the third person charges the public for the equivalent transport in terms of class, extent, and occasion, if the third person is a company in the same group of companies as the employer; and (c) the amount that the employer has paid or is liable to pay the person for the benefit provided. GST (4) In this section, for a registered person who may claim input tax for subsidised transport, amount means the GST-inclusive amount. Defined in this Act: amount , arrangement , company , employee , employer , fringe benefit , group of companies , GST , input tax , pay , subsidised transport , Compare: 2004 No 35 s ND 1C