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MB 7B: Family scheme income from employment benefits: employees not controlling shareholders
or “Income calculation for employees receiving job benefits”
You could also call this:

“How to calculate family income when you get extra perks from a company you partly own”

This section talks about how to figure out your family scheme income when you work for a company you partly own. If you and people close to you own 50% or more of the company on the last day of the income year, and the company gives you special benefits (called fringe benefits), you need to include these in your family scheme income.

Your family scheme income for the year will include two things:

  1. The value of the fringe benefits the company gives you. The company must work this out using special rules.

  2. The amount of tax the company has to pay because of giving you these benefits.

These rules help make sure that when you’re calculating your family scheme income, you’re including all the benefits you get from a company you partly control, not just your regular pay.

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Next up: MB 9: Family scheme income from deposits in main income equalisation accounts

or “Deposits in main income equalisation accounts no longer count as family scheme income”
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Part M Tax credits paid in cash
Adjustment of net income for family scheme

MB 8Family scheme income from fringe benefits: controlling shareholders

  1. This section applies for the purpose of determining the amount that represents the family scheme income of a person for an income year when—

  2. the person is an employee of a company in which the person and associated person hold, on the last day of the income year, voting interests of 50% or more; and
    1. the company provides a fringe benefit that must be attributed to the person under section RD 47 (Attribution of certain fringe benefits).

      1. The person's family scheme income for the income year includes an amount equal to the total of the following amounts:

      2. the taxable value of the fringe benefits that the company must attribute to the person under sections RD 47 to RD 49 for the income year; and
        1. the company's FBT liability in relation to the person under section RD 50 (Employer's liability for attributed benefits) for the income year.

          Notes
          • Section MB 8: added, on , by section 112 of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).
          • Section MB 8 heading: replaced, on , by section 77 of the Taxation (Livestock Valuation, Assets Expenditure, and Remedial Matters) Act 2013 (2013 No 52).
          • Section MB 8(1)(a): replaced, on (applying for the 2014–15 and later income years), by section 111(1) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
          • Section MB 8 list of defined terms market value circumstance: repealed, on , by section 111(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).
          • Section MB 8 list of defined terms market value interest: repealed, on , by section 111(2) of the Taxation (Annual Rates, Foreign Superannuation, and Remedial Matters) Act 2014 (2014 No 4).