GA 2 Commissioner’s power to adjust: fringe benefit tax
When this section applies


This section applies if—


an arrangement is void under section BG 1 (Tax avoidance); and


the arrangement involves altering the incidence of fringe benefit tax (FBT).

Commissioner’s power in relation to excluded income


The Commissioner may adjust the excluded income under section CX 3 (Excluded income) of a person affected by the arrangement in a way the Commissioner thinks appropriate, in order to counteract a tax advantage obtained by the person from or under the arrangement.

Commissioner’s identification of hypothetical situation


When applying subsection (2), the Commissioner may have regard to 1 or more of the amounts listed in subsection (4) which, in the Commissioner’s opinion, had the arrangement not occurred, the person—


would have had; or


would in all likelihood have had; or


might be expected to have had.

Reconstructed amounts


The amounts referred to in subsection (3) are—


an amount of excluded income of the person:


an amount of excluded income of the person, if the person had been allowed the benefit of an amount of excluded income derived by another person as a result of the arrangement.

No double counting


If the Commissioner includes an amount of excluded income in calculating the taxable income of the person, it must not be included in calculating the taxable income of another person.

Defined in this Act: amount, arrangement, Commissioner, excluded income, FBT, fringe benefit tax, taxable income

Compare: 2004 No 35 s GC 17B