New Zealand Legislation: Acts

ME 2 Meaning of employment for this subpart

• Meaning

  (1) For the purposes of the calculation of a minimum family tax credit, employment in the definition of full-time earner, means the activity of a person that gives rise, or will give rise, to an entitlement to a PAYE income payment other than—

  • (a) a payment of any of the kinds referred to in section RD 5(3) and (6)(b) and (c) (Salary or wages):

  • (b) a schedular payment that is a contract payment for a contract activity or service of a non-resident contractor:

  • (c) a payment made by a close company to a person who is a major shareholder of the close company:

  • (d) a payment made by a person to their spouse, civil union partner, or de facto partner:

  • (e) a payment made by a business carried on by 2 or more persons jointly, whether in partnership or otherwise, to a spouse, civil union partner, or de facto partner of 1 of the persons in business.

  When subsections (3) and (4) apply

  (2)  Subsections (3) and (4) apply when a person—

  • (a) receives a PAYE income payment; and

  • (b) on the date of receipt—

    • (i) does not undertake any employment; or

    • (ii) performs an activity to an extent less than would give rise to an entitlement to the PAYE income payment.

  Commissioner’s determination

  (3) The Commissioner may treat the person as having undertaken the employment or performed the activity that would have given rise to the PAYE income payment.

  Considerations

  (4) The Commissioner must have regard to—

  • (a) the date of receipt of the PAYE income payment; and

  • (b) the pay period in which the PAYE income payment occurs; and

  • (c) the circumstances giving rise to the PAYE income payment; and

  • (d) any other matters that the Commissioner considers relevant.

  Defined in this Act: business, civil union partner, close company, Commissioner, contract activity or service, contract payment, de facto partner, employment, full-time earner, minimum family tax credit, major shareholder, non-resident contractor, pay, pay period, PAYE income payment, schedular payment, spouse,

  Compare: 2004 No 35 ss KD 3(1) employment, KD 3A(10)

  Section ME 2(1): amended, on 1 April 2008, by section 481(1) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section ME 2 list of defined terms family tax credit: repealed, on 1 April 2008, by section 481(2)(b) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).

  Section ME 2 list of defined terms full-time earner: inserted (with effect on 1 April 2008), on 6 October 2009, by section 362 of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).

  Section ME 2 list of defined terms minimum family tax credit: inserted, on 1 April 2008, by section 481(2)(a) of the Taxation (Business Taxation and Remedial Matters) Act 2007 (2007 No 109).