RD 27Determining fringe benefit values

1. Sections RD 28 to RD 53 set out the rules for determining the value of a fringe benefit provided by an employer to an employee in connection with their employment. The taxable value of a fringe benefit when an employee pays an amount for receiving the benefit is dealt with in sections RD 54 to RD 57.

2. If, under sections RD 28, RD 29, and RD 33 to RD 41, the value of a fringe benefit cannot be ascertained, the value is the market value or otherwise as the Commissioner determines.

3. In subsection (2), market value means the price normally paid, at the time when the fringe benefit is received by the employee, for the fringe benefit in a sale—

4. in the open market; and
5. freely offered; and
6. made on ordinary trade terms; and
7. to a member of the public at arm’s length.

Compare

• 2004 No 35 ss ND 1A(1), ND 1L

Notes

• Section RD 27(3): replaced (with effect on 1 April 2008 and applying for the 2008–09 and later income years), on 24 February 2016, by section 224(1) of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).