Some Practical Changes to the FBT rules
What is FBT?
Fringe benefit tax was created by the IRD to make sure that employees were not being ‘paid’ via benefits such as the company car, without tax being paid. So for every benefit that an employee gets, and this includes shareholder employees, tax must be calculated and paid over to the IRD. The most common benefit is the company car and has long been a source of irritating compliance for both the shareholders, and their accountants!