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RD 45: Unclassified benefits
or “Tax on certain employee benefits that don't fit into specific categories”
You could also call this:

“ Changing unclassified benefits when companies join or form new ones ”

When a company that is an employer stops existing or a new company is created because of amalgamation, you need to make changes to unclassified benefits. This happens in the time period when the amalgamation occurs.

If the company that’s joining with another pays FBT (Fringe Benefit Tax) every three months, you need to lower the $22,500 amount mentioned in section RD 45(2)(b). You do this in the three-month period when the amalgamation happens. You use a formula to work out how much to lower it by. The formula is: $22,500 multiplied by the number of days left in the quarter after amalgamation, divided by the total days in the quarter.

If a new company is created from the amalgamation and it pays FBT every three months, you also need to lower the $22,500 amount. This time, you use a different formula: $22,500 multiplied by the number of days in the quarter before amalgamation, divided by the total days in the quarter.

For companies that pay FBT once a year, you make similar adjustments. If it’s the company that’s joining with another, you lower the $22,500 amount using this formula: $22,500 multiplied by the number of days left in the year after amalgamation, divided by 365.

If it’s a new company created from the amalgamation that pays FBT yearly, you use this formula instead: $22,500 multiplied by the number of days in the year before amalgamation, divided by 365.

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Next up: RD 47: Attribution of certain fringe benefits

or “Tracking certain job perks for tax purposes”
Next

Part R General collection rules
Employment-related taxes: Value of fringe benefits

RD 46Adjustments for unclassified benefits on amalgamation

  1. This section applies when a company that is an employer ends its existence on amalgamation or when a new company is established on amalgamation. An adjustment is allowed for unclassified benefits in the period in which the amalgamation occurs.

  2. If the amalgamating company pays FBT quarterly, an adjustment must be made in the quarter in which the amalgamation occurs reducing the figure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula—

    $22,500 × number of days in the quarter after amalgamation÷ days in the quarter.

    Where:

    • If the amalgamated company pays FBT quarterly, and the amalgamated company is a new company established on amalgamation, an adjustment must be made in the quarter in which the amalgamation occurs reducing the figure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula—

      $22,500 × number of days in the quarter before amalgamation÷ days in the quarter.

      Where:

      • If the amalgamating company pays FBT annually, an adjustment must be made for the year in which the amalgamation occurs reducing the figure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula—

        $22,500 × number of days in the year after amalgamation ÷ 365.

        Where:

        • If the amalgamated company pays FBT annually, and the amalgamated company is a new company established on amalgamation, an adjustment must be made for the year in which the amalgamation occurs reducing the figure of $22,500 referred to in section RD 45(2)(b) by an amount calculated using the formula—

          $22,500 × number of days in the year before amalgamation ÷ 365.

          Where:

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          Notes
          • Section RD 46(2): amended, on , by section 17(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(2) formula: amended, on , by section 17(a) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(3): amended, on , by section 17(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(3) formula: amended, on , by section 17(b) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(4): amended, on , by section 17(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(4) formula: amended, on , by section 17(c) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(5): amended, on , by section 17(d) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).
          • Section RD 46(5) formula: amended, on , by section 17(d) of the Taxation (Business Tax Measures) Act 2009 (2009 No 5).