Repayment of a loan made by an employee to their employer does not constitute a 'fringe benefit' under the FBT Act, at least where the obligation to repay is imposed without reference to the employment relationship. The entitlement to repayment arises from the creditor/debtor relationship and exists independently of the employee's position. The policy of FBT legislation is to tax benefits that, if provided in cash, would constitute a derivation of income — loan repayments can never satisfy this criterion.
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