Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993

Reprint
as at 1 April 2008

Crest

Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993

(SR 1993/144)

Catherine A Tizard, Governor-General

Order in Council

At Wellington this 24th day of May 1993

Present:
Her Excellency the Governor-General in Council


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

These regulations are administered by the Inland Revenue Department.


Pursuant to section 336TC of the Income Tax Act 1976 (as enacted by section 21(1) of the Income Tax Amendment Act 1991), Her Excellency the Governor-General, acting by and with the advice and consent of the Executive Council, hereby makes the following regulations.

Regulations

1 Title and commencement
  • (1) These regulations may be cited as the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993.

    (2) These regulations shall come into force on the day after the date of their notification in the Gazette.

2 Calculation of amount added to FBT paid on annual or income year basis
  • The additional amount in the nature of interest that is payable under section 123 of the Tax Administration Act 1994 by any employer who pays FBT—

    • (a) on an annual basis in accordance with section RD 61 of the Income Tax Act 2007; or

    • (b) on an income year basis in accordance with section RD 60 of the Income Tax Act 2007—

    shall be calculated in accordance with these regulations.

    Regulation 2: substituted, on 18 December 1996 (applying with respect to the 1997–98 income year and subsequent years), by regulation 2 of the Income Tax (Reorganisation and Rewrite Consequential Amendments) Regulations 1996 (SR 1996/377).

    Regulation 2 heading: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 2: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 2(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 2(b): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

3 Amount of interest
  • The additional amount in the nature of interest referred to in regulation 2 shall, in relation to an income year, be the sum of the amounts payable for each deferral period whose commencement first follows the end of any quarter the whole or any part of which falls within that income year.

    Regulation 3: amended, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 2 of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

4 Commencement of deferral periods
  • Each deferral period commences on the day after each quarterly due date for payment of FBT by employers who have not elected to pay FBT on an annual or an income year basis.

    Regulation 4: substituted, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 3 of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

    Regulation 4: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

5 End of deferral period
  • (1) Where an employer has made an election under section RD 61 of the Income Tax Act 2007 in respect of any income year, each deferral period of that employer, in respect of that income year, ends on the earlier of—

    • (a) the date of payment of the FBT in respect of that income year; or

    • (b) 31 May that first follows the end of that income year.

    (2) Where an employer has made an election under section RD 61 of the Income Tax Act 2007 in respect of any income year, the deferral period of that employer, in respect of that income year, ends on the earlier of—

    • (a) the date of payment of the FBT in respect of that income year; or

    • (b) the terminal tax date of that employer for that income year.

    Regulation 5(1): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 5(1)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 5(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 5(2)(a): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

6 Formula
  • (1) Subject to subclause (2), the interest payable in respect of each deferral period shall be calculated using the following formula:

    a × b × c
    365

    where—

    a
    is the total number of days in the deferral period; and
    b
    is the FBT liability calculated in respect of fringe benefits provided or granted in the income year under section RD 61 or section RD 60 of the Income Tax Act 2007, as the case may require, divided by 4; and
    c
    is a rate of interest of 9% per annum.

    (2) Where there are 5 deferral periods in relation to an income year of an employer who has made an election in respect of that income year under section RD 60 of the Income Tax Act 2007, the amount of item b of the formula in subclause (1) shall be reduced in respect of the first and fifth deferral periods by multiplying it by the following fraction:

    d
    3

    where d is the number of months in the quarter to which the deferral period relates that fall within the income year.

    (3) [Revoked]

    Regulation 6(1): amended, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 4(1)(a) of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

    Regulation 6(1) formula item b: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 6(1) formula item b: amended, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 4(1)(b) of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

    Regulation 6(2): substituted, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 4(2) of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

    Regulation 6(2): amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

    Regulation 6(3): revoked, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 4(2) of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

7 Balance date not falling at the end of month
  • Where an employer's balance date is not the last day of a month, these regulations, except for the calculation of FBT liability in respect of the income year under item b of the formula in regulation 6(1), shall apply as if that balance date were the last day of the month in which it falls.

    Regulation 7: added, on 2 May 1994 (applying with respect to additional amounts in the nature of interest payable in respect of fringe benefit tax whose due date for payment falls on or after 31 May 1994), by regulation 5 of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70).

    Regulation 7: amended, on 1 April 2008 (effective for 2008–09 income year and later income years, except when the context requires otherwise), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).

Bob MacFarlane,
Acting for Clerk of the Executive Council.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 27 May 1993.


Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)


Notes
1 General
  • This is a reprint of the Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993. The reprint incorporates all the amendments to the regulations as at 1 April 2008, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints
  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared
  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989
  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • omission of unnecessary referential words (such as of this section and of this Act)

    • typeface and type size (Times Roman, generally in 11.5 point)

    • layout of provisions, including:

      • indentation

      • position of section headings (eg, the number and heading now appear above the section)

    • format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • format of dates (eg, a date formerly expressed as the 1st day of January 1999 is now expressed as 1 January 1999)

    • position of the date of assent (it now appears on the front page of each Act)

    • punctuation (eg, colons are not used after definitions)

    • Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • case and appearance of letters and words, including:

      • format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • small capital letters in section and subsection references are now capital letters

    • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • running heads (the information that appears at the top of each page)

    • format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)
  • Income Tax Act 2007 (2007 No 97): section ZA 2(1)

    Income Tax (Reorganisation and Rewrite Consequential Amendments) Regulations 1996 (SR 1996/377): regulation 2

    Income Tax (Calculation of Interest on Fringe Benefit Tax) Regulations 1993, Amendment No 1 (SR 1994/70)