Section RD 45 — Income Tax Act 2007: Unclassified benefits

RD 45 Unclassified benefits Liability limited (1) An employer is liable to pay FBT on an unclassified benefit only within the limits described in this section. Quarterly payment (2) When FBT is paid quarterly, an employer is liable for FBT on an unclassified benefit provided to an employee in a quarter only if— (a) the total taxable value of all unclassified benefits provided in the quarter by the employer to the employee is more than $300; or (b) the total taxable value of all unclassified benefits provided in the last 4 quarters including the current quarter by the employer to all employees of the employer, whether accounted for on a quarterly or an income year basis, is more than $22,500. Yearly payment (3) When FBT is paid on either an annual basis or an income year basis, except when subsection (4) applies, an employer is liable for FBT on unclassified benefits provided to an employee in the tax year or income year only if— (a) the total taxable value of all unclassified benefits provided in the tax year or income year by the employer to the employee is more than $1,200; or (b) the total taxable value of all unclassified benefits provided in the tax year or income year by the employer to all employees of the employer is more than $22,500. Period longer or shorter than income year (4) When an employer accounts for FBT on an income year basis, and the period for which they have accounted under section RD 60 differs from an income year for the reasons described in subsection (5), an employer is liable for FBT on unclassified benefits provided in the period only if— (a) the total taxable value of all unclassified benefits provided in the period by the employer to an employee is more than the figure that is the same fraction or multiple of $1,200 as the number of days in the period is a fraction or multiple of 365; or (b) the total taxable value of all unclassified benefits provided in the period by the employer to all employees of the employer is more than the figure that is the same fraction or multiple of $22,500 as the number of days in the period is a fraction or multiple of 365. Reasons for difference (5) In subsection (4), the income year for which the employer has accounted may be longer or shorter than the normal income year because the employer has either— (a) started or ceased business during that income year; or (b) chosen, with the agreement of the Commissioner, to file a return under this subpart for the income year ending with the date of the annual balance of their accounts. Employer and associated persons (6) In this section, employer includes a person associated with them at any time in the relevant period. Defined in this Act: associated person , balance date , business , Commissioner , employee , employer , FBT , income year , pay , quarter , return of income , tax year , unclassified benefit , Compare: 2004 No 35 s ND 1Q Section RD 45(2)(a): amended, on 1 April 2009, by section 16(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section RD 45(2)(b): amended, on 1 April 2009, by section 16(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section RD 45(3)(a): amended, on 1 April 2009, by section 16(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section RD 45(3)(b): amended, on 1 April 2009, by section 16(d) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section RD 45(4)(a): amended, on 1 April 2009, by section 16(e) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5). Section RD 45(4)(b): amended, on 1 April 2009, by section 16(f) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).