Section RD 59 — Income Tax Act 2007: Alternate rate option

RD 59 Alternate rate option Election (1) This section applies when an employer chooses to pay their FBT liability under the alternate rate option. First three quarters (2) The employer may pay FBT for any or all of the first 3 quarters of a tax year at 43% of the taxable value of a fringe benefit. Alternate rate (3) The employer must pay FBT at the rate of 49.25% of the taxable value of a fringe benefit for any of the first 3 quarters of a tax year for which they do not pay at the rate of 43% under subsection (2). Final quarter (4) For the final quarter of the tax year, the employer must calculate the total FBT payable for each employee under sections RD 50 and RD 53 for the tax year and subtract the amount of FBT payable for the previous 3 quarters of the tax year. Decision irrevocable (5) The decision to use the alternate rate option cannot be changed after the return is filed. Defined in this Act: amount , employee , employer , FBT , fringe benefit , pay , quarter , tax year , Compare: 2004 No 35 ss ND 1(2)(a) , ND 2(1)–(4) , ND 10(1) Section RD 59(2): amended, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 68(2)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 59(2): amended (with effect on 1 April 2010), on 28 May 2010 (applying for the 2010–11 income year and later income years), by section 68(1)(a) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 59(3): substituted, on 1 April 2011 (applying for the 2011–12 income year and later income years), by section 68(2)(b) of the Taxation (Budget Measures) Act 2010 (2010 No 27). Section RD 59(4): amended, on 2 November 2012, by section 138 of the Taxation (Annual Rates, Returns Filing, and Remedial Matters) Act 2012 (2012 No 88).