Section RD 63 — Income Tax Act 2007: When employer stops employing staff

RD 63 When employer stops employing staff Who this section applies to (1) This section applies in a tax year to an employer who stops employing staff and does not intend to replace them. But this section does not apply to an employer who continues to provide a fringe benefit to a former employee. Treated as final quarter (2) The employer must pay FBT under section RD 59 , treating the quarter of the tax year in which the employment ended as if it were the final quarter. Single rate option (3) As an alternative to the application of section RD 50(2) or RD 53(3) , the employer may choose to pay FBT under the single rate option— (a) making the calculation in relation to the period from the start of the tax year to the date on which the employer stops employing staff; and (b) taking into account any earlier payments of FBT made in relation to an employee. Defined in this Act: employee , employer , FBT , fringe benefit , pay , quarter , tax year , Compare: 2004 No 35 s ND 8