Commonwealth Consolidated Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 - SECT 137

  (1)   For the purpose only of ascertaining whether a person is an employee or an employer within the meaning of this Act, where:

  (a)   a benefit is provided by a person (in this subsection referred to as the first person ) to, or to an associate of, another person (in this subsection referred to as the second person );

  (b)   but for this subsection, the benefit would not be regarded as having been provided in respect of the employment of the second person; and

  (c)   either of the following conditions is satisfied:

  (i)   if the benefit were provided by the first person by way of a cash payment to the second person, the payment would constitute salary or wages paid by the first person to the second person;

  (ii)   all of the following conditions are satisfied:

  (A)   subparagraph   (i) does not apply in relation to the benefit;

  (B)   the first person is an associate of a third person or the benefit is provided under an arrangement between the first person and a third person;

  (C)   if the benefit were provided by the third person by way of a cash payment to the second person, the payment would constitute salary or wages paid by the third person to the second person;

a definition in subsection   136(1) applies as if the benefit were salary or wages paid to the second person by:

  (d)   in a case to which subparagraph   (c)(i) applies--the first person; or

  (e)   in a case to which subparagraph   (c)(ii) applies--the third person.