Section RD 62 — Income Tax Act 2007: Changes in payment periods

RD 62 Changes in payment periods No changes for simple or alternate rate options (1) An employer’s decision to pay FBT on a quarterly basis under the single rate option or the alternate rate option cannot be changed. When requirements for yearly basis no longer met (2) If an employer who has chosen for a tax year to pay FBT on an income year basis or on an annual basis no longer meets the relevant requirements of section RD 60(1) or RD 61(1) , the employer must pay their FBT liability for fringe benefits provided to employees on or after the first day of the tax year under the single rate option or the alternate rate option. Choosing to change to quarterly basis (3) An employer who has chosen for a tax year to pay FBT on an income year basis or on an annual basis, may choose at any time to pay FBT on a quarterly basis. When change takes effect (4) An employer who chooses to change their payment period under subsection (3) must pay their FBT liability on a quarterly basis for a fringe benefit provided from— (a) the first day of the next tax year, if the employer previously paid on an annual basis; or (b) the first day of the next income year of the employer, if the employer previously paid on an income year basis; or (c) another date agreed by the employer and the Commissioner. Choosing to change to income year basis (5) If an employer who is eligible to use the close company option has been paying FBT on a quarterly basis, and chooses to change to payment on an income year basis, a calculation must be made under section RD 59 for the period— (a) beginning immediately after the end of the last full tax year for which the employer pays FBT on a quarterly basis: (b) ending immediately before the start of the first income year for which the election applies. Part-periods (6) If an employer changes their payment period from an income year to a quarter, and the day referred to in subsection (4)(b) is not the same day as the first day of a quarter, then for the purposes of the payment of FBT, the employer must treat the period between that day and the first day of the next quarter as if it were a quarter. Defined in this Act: close company , Commissioner , employee , employer , FBT , income year , pay , quarter , tax year , Compare: 2004 No 35 ss ND 2(4) , ND 14(2B) , ND 15