Recognising salary trade-offs as income
Last week the Government released an issues paper seeking feedback on options to ensure that salary and salary substitutes are taxed equally. Under current tax legislation salary and wages are subject to PAYE and most non-cash benefits received as a result of employment are treated as fringe benefits. However there are a few exceptions including car parks, childcare provided on employer’s premises and benefits received by employees of charitable organisations, which are currently not taxable under current rules. This paper proposes two suggested mechanisms for capturing all salary trade-offs: ... Read more at: http://www.missions.org.nz/images/salary%20trade-offs%20as%20income%20412.pdf Source: The Insider #25.