Fringe benefit tax or FBT is used to make sure that companies pay tax on benefits they give to their employees. It’s designed to make sure that companies and employees don’t use generous work perks as a way of getting around paying tax on ordinary income. Whenever the car is being used for personal rather than work-related purpose, the owner should be paying tax. Officials said that continuing to charge businesses for enjoying work perks they actually weren’t supposed to be using during level 4 “could be perceived as contrary to this Government objective”. Deloitte tax partner Robyn Walker was one of the tax specialists who asked IRD to make a ruling on the issue.

Source: Stuff February 23, 2021 06:56 UTC