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Income Tax Act 2007

Income - Excluded income - Fringe benefits

CX 12: Services for members and former members of Parliament

You could also call this:

“Tax-free services for current and former MPs counted as fringe benefits”

When you’re a member of Parliament or a former member, you might get some special services like travel, accommodation, and communications. These services are considered exempt income under [section CW 31]. This means you don’t have to pay tax on them.

However, even though these services are exempt income, they are still seen as a fringe benefit. A fringe benefit is something extra you get because of your job, on top of your regular pay.

This rule is important because it overrides two other rules. It overrides [section CX 5], which is about how exempt income and fringe benefits usually work together. It also overrides [section CX 28], which is about accommodation benefits.

So, even if you’re getting these services as exempt income, they’re still counted as a fringe benefit for tax purposes.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1513356.

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Part C Income
Excluded income: Fringe benefits

CX 12Services for members and former members of Parliament

  1. A fringe benefit arises when travel, accommodation, and communications services are exempt income under section CW 31 (services for members and former members of Parliament).

  2. This section overrides sections CX 5 (relationship with exempt income) and CX 28 (accommodation).

Notes
  • Section CX 12: replaced, on , by section 66 of the Members of Parliament (Remuneration and Services) Act 2013 (2013 No 93).