Part FRecharacterisation of certain transactions
Tax relief for emergencies: Optional rule for valuation of group assets
FP 21Employee benefits for emergency: not fringe benefit
This section applies when an employee receives from an employer a benefit that—
- would be a fringe benefit in the absence of this section; and
- is for the purpose of the relief of employees from the adverse effects of an emergency event; and
- is derived in the period of 8 weeks starting on the date the emergency event begins, as specified by regulations made under section 6J of the Tax Administration Act 1994; and
- does not replace a PAYE income payment; and
- does not depend on the seniority of the employee; and
- if the employee is associated with the employer, is available to another employee who—
- is not associated with the employer; and
- is, or was immediately before an emergency event, in full-time employment with the employer; and
- is not associated with the employer; and
- is treated by the employer as not being a fringe benefit.
Benefits satisfying subsection (1) that would, in the absence of this section, be fringe benefits having a value for the employee that the employer could estimate are not fringe benefits to the extent to which their total value as fringe benefits for the period would be less than or equal to the amount by which $5,000 exceeds the income that is—
- exempt income under section CW 19B(b) (Certain amounts derived by employees during emergency events: exempt income); and
- derived by the employee from the employer in the same period.
Benefits satisfying subsection (1) that would, in the absence of this section, be fringe benefits having a value for the employee that the employer could not estimate are not fringe benefits.
Notes
- Section FP 21: inserted, on , by section 65 of the Taxation (Annual Rates for 2024–25, Emergency Response, and Remedial Measures) Act 2025 (2025 No 9).