Section RD 50 — Income Tax Act 2007: Employer’s liability for attributed benefits

RD 50 Employer’s liability for attributed benefits When this section applies (1) This section applies when an employer is required to attribute the value of a fringe benefit to an employee under sections RD 47 and RD 49 . Tax liability (2) The employer’s FBT liability in relation to the employee is the amount calculated using the formula— tax on all-inclusive pay – tax on cash pay. Definition of items in formula (3) In the formula,— (a) tax on all-inclusive pay is the amount determined at the rate set out in schedule 1, part C , table 1 (Basic tax rates: income tax, ESCT, RSCT, RWT, and attributed fringe benefits) on the amount of the employee’s all-inclusive pay calculated using the formula in section RD 51(2) : (b) tax on cash pay is the amount calculated under section RD 51(3)(b) or (4)(b) . Exception for shareholder-employees and persons with attributed income (4) If the employer has an exception for an employee under section RD 52 in a tax year, and the employer pays FBT at the rate of 42.86% of the taxable value of the attributed fringe benefits under section RD 52(3)(a) , the employer must deduct the FBT payable in the tax year from the result of the formula in subsection (2). Further option (5) Instead of calculating FBT under subsections (2) and (4), an employer may choose to pay FBT at the rate of 49.25% on the taxable value of the attributed fringe benefits. Defined in this Act: amount , employee , employer , FBT , fringe benefit , pay , tax year , Compare: 2004 No 35 s ND 5(3)–(6) Section RD 50(3)(a): amended, on 1 April 2008, by section 562 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109). Section RD 50(4): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 64(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 50(4): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 64(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 50(5): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 64(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 50(5): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 64(1)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 50(5): amended, on 1 April 2009, by section 29(1) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).