Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

Income - Excluded income - Fringe benefits

CX 8: Private use of motor vehicle: use by more than 1 employee

You could also call this:

“How multiple employees' personal use of a company car on the same day is taxed”

If your employer lets more than one employee use a company car for personal reasons on the same day, it’s counted as one instance of use. The taxable value of this benefit is reduced by the total amount that any of the employees pay towards it.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513346.

Topics:
Money and consumer rights > Taxes
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CX 7: Employer or associated person treated as having right to use vehicle under arrangement, or

“Employer treated as having right to use employee's car during personal use”

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CX 9: Subsidised transport, or

“Rules for employer-provided subsidised transport as a fringe benefit”

Part C Income
Excluded income: Fringe benefits

CX 8Private use of motor vehicle: use by more than 1 employee

  1. If, on any day, a motor vehicle is made available by an employer for the private use of more than 1 employee, this availability is treated as a single instance. The taxable value of the fringe benefit is reduced by the total amount of any contributions paid by an employee or employees.

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