Section RD 57 — Income Tax Act 2007: Private use of motor vehicle: when schedular value used

RD 57 Private use of motor vehicle: when schedular value used When this section applies (1) This section applies when an employer has valued the motor vehicle using schedule 5, clause 9 (Fringe benefit values for motor vehicles). Reduction (2) In the calculation of the taxable value of the fringe benefit, the value of the benefit determined under sections RD 28 to RD 30 is reduced by an amount that is the applicable percentage of the cost, determined excluding GST, under schedule 5, clause 6(a) in the following way: (a) when FBT is paid quarterly, by a percentage calculated using the formula— 2.5 + (2.5 × schedule 5 rate): (b) when FBT is paid on an annual basis, by a percentage for each quarter in which the vehicle was part-owned by the employee or associated person calculated using the formula— 2.5 + (2.5 × schedule 5 rate): (c) when FBT is paid on an income year basis, by a percentage calculated using the formula— 10 + (10 × schedule 5 rate). Schedule 5 rate (3) In the formulas, schedule 5 rate is the rate of GST specified in schedule 5, clause 6(b), (c), (d), or (e) for the employer and the relevant quarter and relevant income year, as applicable. Defined in this Act: amount , associated person , employee , employer , FBT , fringe benefit , GST , income year , motor vehicle , pay , quarter , Compare: 2004 No 35 s ND 1V Section RD 57(1): amended, on 1 April 2008, by section 541 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).