20.8 Other exemptions


Legislative reference: section 17External Link of the FBTAA.

An exempt benefit arises from a loan in any of the following circumstances:

  • You are engaged in the business of money lending and the interest rate on a loan to an employee is fixed at a rate at least equal to the interest applicable under a comparable loan made to a member of the public in the ordinary course of business at about the time the loan was made to the employee.
  • You are engaged in a business of money lending and, for each year of tax over which the loan extends, the rate of interest is variable, but never less than the arm's-length rate you charged on loans made about the time the loan was made to the employee.
  • You advance money to an employee solely for the purpose of meeting expenses to be incurred within a six-month period of the advance being made. The expense must be incurred in carrying out employment-related duties with you (the employer who made the advance), and the expenses must be accounted for by the employee and any excess advance refunded or otherwise offset.
  • You make an advance, repayable within 12 months, to an employee solely to pay a security deposit (for example, rental bond or service connection deposit) in respect of accommodation. The accommodation must give rise to an exempt benefit in accordance with the conditions relating to living-away-from-home accommodation outlined in section 20.4, or the accommodation must be temporary accommodation eligible for a reduced taxable value, in accordance with the relocation concessions explained in section 19.4 of Reductions in fringe benefit taxable value.
    Last modified: 08 Jan 2014QC 17820