Income Tax Act 2004

  • repealed
  • Income Tax Act 2004: repealed, on 1 April 2008, by section ZA 1(1) of the Income Tax Act 2007 (2007 No 97).
GC 14B Attribution rule for personal services

(1)

If, during a tax year, a person (person A) purchases services from another person (person B) and the services are personally performed by a third person (person C), who is associated with person B, an amount must be attributed by person B to person C in accordance with section GC 14D in the same tax year.

(2)

Subsection (1) applies if—

(a)

80% or more of person B’s total assessable income from personal services during the tax year is derived from the sale of services to person A or a person associated with person A; and

(b)

80% or more of person B’s total assessable income from personal services during the tax year is derived through services personally performed by person C or a relative of person C; and

(c)

person C’s net income for the tax year in which an attribution would be made is more than $60,000; and

(d)

substantial business assets are not a necessary part of the business structure that is used to derive the total assessable income referred to in paragraph (a).

(3)

Subsection (1) does not apply—

(a)

if person B and person C are both non-residents during all of person B’s tax year:

(ab)

if person B is a natural person and is not a partner of a partnership:

(b)

to the extent that the services personally performed by person C are essential support for a product supplied by person B.

Compare: 1994 No 164 s GC 14B