Tax on fringe benefits backed

Press, 18 March 1982, Page 10

Tax on fringe benefits backed

PA Wellington Employers are to blame for fringe benefits, such as cars being considered for taxation, according to a former Wellington District Commissioner of Inland Revenue, Mr Charles Rosen. Addressing the Wellington branch of the Institute of Credit and Financial Management. he said that he favoured the taxing of the private use of company cars by employees: the employees definitely’ received a benefit from the employer and should pay tax on that. The controversy over the taxing of fringe benefits had largely been caused by employers. Mr Rosen said: “It has

become too public. Cars have become part of a person's wage: it is being advertised as part of the job." Mr Rosen said he believed that if an employer offerred such a perk as part of a job’s wage package, the perk should be taxed and the Government should do something about it.

“A car is worth more than $6OOO a year." Asked if, in that event, an expenses claim could be made for supplying a garage for a car. Mr Rosen said that this would be possible but the person would then have to pay tax on the rent he received for the garage. Company cars used privately in Britain were taxed.