The loan fringe benefit amount is the amount of interest that would be payable on the loan using the benchmark interest rate of 5.65% for the year. A general ledger printout of the loan account gives us most of the information to enable us to do the calculations. We may already have prepared some accounts for you during the year and have details of these movements. Alternatively, these details may need to be compiled now. If these loans are used for income producing purposes (e.g. an employee has borrowed money from the company to buy shares) there will be no taxable fringe benefit but we will still need to do the calculations for substantiation purposes. If interest is already being charged on the loan (e.g. a loan to an employee) then we will need the interest rate charged or the interest actually charged in order to calculate the taxable fringe benefit. Note: A loan of property is not a loan benefit; this is defined as a which is discussed in “residual benefit”, a later section. 3. Debt Waiver Benefits A taxable benefit arises where an employer releases an employee from a debt. The taxable value is the amount waived, so therefore we will require this information if applicable. Please provide the following for each debt waiver: Name of employee Amount of debt waiver Date of debt waiver 4. Expense Payment Benefit An expense payment benefit arises where an employer pays or reimburses private expenses incurred by employees, including directors. Examples of such expenses include: Home office computers Children’s school fees Private telephone accounts Rates and land taxes Electricity, gas (heat & power) Medical and health benefits Insurance premiums Travel/credit cards Drivers licence Mortgage/loan payments Holiday transport Other - please ask us if you have any queries In most cases, where the employee would have been allowed a tax deduction for the expense if the employer had not paid or reimbursed it, then the taxable value is reduced to the extent it is deductible. We will need the following details in relation to expense payment fringe benefits: The name of the employee for whom it was paid; The date, nature and amount of the payment; The extent to which, if any, that the payment is tax deductible to the employee. Note: Any item for which depreciation will be claimed is excluded from being a deduction. 5. Housing Benefits
The loan fringe benefit amount is the amount of interest that would be payable on the loan using the benchmark interest rate of 5.65% for the year. A general ledger printout of the loan account gives us most of the information to enable us to do the calculations. We may already have prepared some accounts for you during the year and have details of these movements. Alternatively, these details may need to be compiled now. If these loans are used for income producing purposes (e.g. an employee has borrowed money from the company to buy shares) there will be no taxable fringe benefit but we will still need to do the calculations for substantiation purposes. If interest is already being charged on the loan (e.g. a loan to an employee) then we will need the interest rate charged or the interest actually charged in order to calculate the taxable fringe benefit. Note: A loan of property is not a loan benefit; this is defined as a “residual benefit”, which is discussed in a later section. 3. Debt Waiver Benefits A taxable benefit arises where an employer releases an employee from a debt. The taxable value is the amount waived, so therefore we will require this information if applicable. Please provide the following for each debt waiver: Name of employee Amount of debt waiver Date of debt waiver 4. Expense Payment Benefit An expense payment benefit arises where an employer pays or reimburses private expenses incurred by employees, including directors. Examples of such expenses include: Children’s school fees Home office computers Private telephone accounts Rates and land taxes Electricity, gas (heat & power) Medical and health benefits Insurance premiums Travel/credit cards Drivers licence Mortgage/loan payments Holiday transport Other - please ask us if you have any queries In most cases, where the employee would have been allowed a tax deduction for the expense if the employer had not paid or reimbursed it, then the taxable value is reduced to the extent it is deductible. We will need the following details in relation to expense payment fringe benefits: The name of the employee for whom it was paid; The date, nature and amount of the payment; The extent to which, if any, that the payment is tax deductible to the employee. Note: Any item for which depreciation will be claimed is excluded from being a deduction. 5. Housing Benefits
FBT-questionnaire.docx