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RC 40: Some definitions
or “This section explains what early-payment discounts and small-business persons are”
You could also call this:

“This subpart outlines employer obligations for PAYE, FBT, and ESCT/RSCT rules”

This part of the law explains what employers need to do under three sets of rules: PAYE, FBT, and ESCT/RSCT.

For PAYE rules, it tells you what kinds of payments these rules apply to. It also explains how to work out how much tax to take out and give to the government. Sometimes you might need to adjust these amounts. There are also some rules about how to pay this money.

For FBT rules, it shows you how to figure out the value of benefits given to employees. It explains which benefits belong to which employees and how much tax should be paid on them. You also have choices in how to pay this tax to the government.

For ESCT and RSCT rules, it lists which payments these rules apply to. It also tells you how to work out how much tax to take out and give to the government for these payments.

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Next up: RD 2: PAYE rules and their application

or “Rules for paying and receiving income tax through the PAYE system”
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Part R General collection rules
Employment-related taxes

RD 1What this subpart does

  1. This subpart establishes and measures an employer’s liability under—

  2. the PAYE rules by—
    1. listing the types of payments to which the rules apply:
      1. calculating the amounts of tax that must be withheld and paid to the Commissioner under the rules:
        1. providing for certain adjustments to the amounts:
          1. providing some rules related to the payment of the amounts:
          2. the FBT rules by—
            1. calculating the value of the benefit provided:
              1. attributing certain fringe benefits to employees:
                1. setting out the taxable value of certain fringe benefits:
                  1. providing options for the payment of FBT to the Commissioner:
                  2. the ESCT rules and RSCT rules by setting out the payments to which the rules apply and calculating the amounts of tax that must be withheld and paid to the Commissioner under the rules.

                    Notes
                    • Section RD 1(c): amended, on , by section 538 of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).
                    • Section RD 1 list of defined terms RSCT rules: inserted (with effect on 1 April 2008), on (applying for the 2008–09 and later income years), by section 140(1) of the Taxation (Tax Administration and Remedial Matters) Act 2011 (2011 No 63).