Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Legislation Commentary: Draft Attribution Rule

Draft Attribution Rule

Where a person (the interposed person) is interposed between a person purchasing services (the service purchaser) and an individual who personally performs the services (the service provider), the net income for an income year of the interposed person from the services (calculated as if that person had no other gross income or expenditure and before any amount attributed under this section) shall for income tax purposes be attributed to the service provider where,--

(a) The interposed person and the service provider are related persons; and

(b) During the income year the interposed person receives 80 percent or more of its service income, either directly or indirectly, from one service purchaser and associated persons of that service purchaser; and

(c) During the income year, 80 percent of the fee income relates to the personal services provided by the service provider and associated persons; and

(d) During the income year, significant and substantial assets (owned or not), other than intangible assets, do not form a structural part of the process of deriving the interposed person’s income from the services.

Provided that:

(e) This rule shall not apply where the net amount to be attributed is less than $5,000 (for partnerships this $5,000 amount is calculated after allocation of partners' salaries for personal exertion); and

(f) Where the net amount is to be attributed to more than one person, it shall be reasonably apportioned between those persons; and

(g) Where the net income of the interposed person is less than the amount that would otherwise be attributed, otherwise than because of losses brought forward or offset from another group company, that lesser amount shall be the amount attributed; and

(h) Where the interposed person is not a partnership, the amount attributed shall be regarded for tax purposes as monetary remuneration incurred by the interposed person in the course of deriving its gross income and paid to and derived by the service provider in that income year, but not as a source deduction payment; and

(i) Where the interposed person is a partnership the amount attributed shall be regarded as an allocation in that income year of the partnership income; and

(j) The amount attributed shall be reduced by any dividend, including any imputation credits, paid during the income year or within six months after its end or any beneficiary or partnership income allocated in respect of the income year by the intermediary person to the service provider from an amount that would otherwise have been attributed to the service provider in that income year; and

(k) Where there is more than one interposed person, their income and expenditure shall, for tax purposes, be adjusted as appropriate to reflect the intent of this rule; and

(l) An interposed person for this purpose includes a partnership.


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell : On Dealing With Impeccable, Impeachable Lies

By now, the end game the Republican Senate majority has in mind in their setting of the rules for the impeachment trial of Donald J. Trump is pretty clear to everyone: first deny the Democrats the ability to call witnesses and offer evidence, and then derisively dismiss the charges for lack of evidence. For his part, does former security adviser John Bolton really, really want to testify against his former boss? If there was any competing faction within the Republican Party, there might be some point for Bolton in doing so – but there isn’t. More>>

Published on Werewolf

 
 

WINZ Quarterly Report: More People Getting Into Work

The December quarter benefit numbers released today show the Government’s plan to get people off the benefit and into work is starting to pay off,” Social Development Minister Carmel Sepuloni said. More>>

ALSO:

Changing lives: Boost In Whānau Ora Funding

Whānau throughout New Zealand are set to benefit from an extra three million dollars that will go directly to Whānau Ora Commissioning Agencies, the Minister for Whānau Ora Peeni Henare announced today. More>>

ALSO:


PGF Kaikōura $10.88M: Boost In Tourism & Business

The Provincial Growth Fund (PGF) is investing $10.88 million to boost business and tourism opportunities in Kaikōura, Parliamentary Undersecretary for Regional Economic Development, Fletcher Tabuteau announced today. More>>

ALSO:

Whitebaiting: Govt Plans To Protect Announced

With several native whitebait species in decline the Minister of Conservation Eugenie Sage has today released proposals to standardise and improve management of whitebait across New Zealand. More>>

ALSO:


Education: Resource For Schools On Climate Change

New resource for schools to increase awareness and understanding of climate change... More>>

ALSO:

In Effect April: New Regulations For Local Medicinal Cannabis

Minister of Health Dr David Clark says new regulations will allow local cultivation and manufacture of medicinal cannabis products that will potentially help ease the pain of thousands of people. More>>

ALSO:


Gordon Campbell: On What An Inquiry Might Look Like

Presumably, if there is to be a ministerial inquiry (at the very least) into the Whakaari/White Island disaster, it will need to be a joint ministerial inquiry. That’s because the relevant areas of responsibility seem to be so deeply interwoven... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels