Fringe benefit value when payment made by employee
2013 amendment to legislation sets out that the value of a fringe benefit is reduced by the amount an employee pays to receive that fringe benefit.
Section RD 54(2) of the Income Tax Act 2007
Background
This subsection sets out that the value of a fringe benefit is reduced by the amount an employee pays to receive that fringe benefit.
Key features
A technical amendment has been made to section RD 54(2) to ensure that the net value of a benefit cannot be a negative number if the employee pays an amount which is greater than the value of the relevant fringe benefit.
Application date
The amendment applies from 1 April 2014.