BR PUB22/06 – FBT: Charitable and Other Donee Organisations

Where a short term charge card facility is provided to an employee of a qualifying organisation and the value of that benefit for the employee in an income year is more than the lesser of 5% of the employees salary or $ 1,200 that benefit is a Fringe Benefit and exclusions in CX25 (1) do not apply.
Where any other non-monetary benefit is provided to an employee of qualifying organisation:
A fringe benefit is NOT provided where the benefit is not received in connection with their employment
A Fringe Benefit is NOT provided where the benefit is received mainly in connection with their employment to the extent that:

The employee is employed in carrying out the qualifying organisation’s benevolent, charitable, cultural or philantropic purpose
The employee is employed in a business carried on by the qualifying organisation, where the business activity is within the organisation’s benevolent, charitable, cultural or philantropic purposes
A fringe benefit is provided if the employee is employed in a business carried on by the qualifying organisation, where the business activity is outside of the organisation’s benevolent, charitable, cultural or philantropic purposes, regardless of whether the business profits are applied to the organisation’s benevolent, charitable, cultural or philantropic purposes.

OTHER NOTICES

Delays in response times by IRD. It was brought to our attention that it is taking longer than usual to answer calls, and correspondence. We have been advised that the IRD is facing an unprecedented volume of calls. If you are trying to get in touch with IRD with not much luck, let us know and we will try to assist.

August 2022