Part C
Income
Excluded income:
Fringe benefits
CX 18Benefits provided to associates of both employees and shareholders
This section applies when—
- a benefit provided to an associated person of an employee would be treated as a fringe benefit under section GB 32 (Benefits provided to employee’s associates) in the absence of section CX 4; and
- the employer is a company; and
- the associated person is also associated with a shareholder in the company; and
- the associated person is not a company; and
- the associated person is not a shareholder in the company; and
- the benefit would be a dividend if provided to the shareholder.
The benefit is subject to the FBT rules and is treated as not being a dividend.
Compare
- 2004 No 35 s GC 15(3), (4)