Commonwealth Numbered Acts

FRINGE BENEFITS TAX ASSESSMENT ACT 1986 No. 39 of 1986 - SECT 137

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 sub-section referred to as
the "first person") to, or to an associate of, another person (in this
sub-section referred to as the "second person");

   (b)  but for this sub-section, 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)  sub-paragraph (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, section 221A of the Income Tax 
                     Assessment Act 1936 applies as if the benefit were
                     salary or wages paid to the second person by-

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

   (e)  in a case to which sub-paragraph (c) (ii) applies-the third person.
(2) For the purposes of this Act (other than the definition of "current
employee" in sub-section 136 (1)), the definition of " salary or wages" in
section 221A of the Income Tax Assessment Act 1936 applies as if the reference
in that definition to an employee were a reference to a current employee
within the meaning of this Act.