New Zealand Legislation: Acts
Acts are laws made by Parliament
(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
