| Submission Number |
79 |
| Submitter |
nsaTax Ltd |
Section / Provision Income Tax Act 2007 |
RD 3(3) and RD 3(4) |
Section / Provision Income Tax Act 2004 |
OB 2 2(d) |
Date Received |
25/07/08 |
| Description of issue |
Section RD 3(3) and 3(4) of the 2007 Act refer to a person
choosing whether an amount paid to them in the income year is or
is not a payment of PAYE income. These sections refer to \"an
amount\" paid to them. Section OB 2 of the 2004 Act at para 2(c)
and 2(d) makes reference to all assessable income deerived in
the tax year. The 2004 Act can be interpreted as meaning an
\"all or nothing\" approach, i.e. if you elect to pay PAYE
through the year then a year end bonus must also be at PAYE
because OB 2(2)(d) refers to \"all assessable income\". However
the 2007 Act indicates you could pay a salary and deduct PAYE
throught the year and then a year end bonus (being an amount)
could be credited with no PAYE deduction. Not an identified
policy change so logic suggests that OB 2 should be followed
however RD 3 wording suggests otherwise??
|
| Section / Provision Income Tax Act 1994 |
|
| Status |
Finalised |
| Outcome |
The Panel has concluded and agree there is an
unintended legislative change in respect of sections RD 3(3) and
RD 3(4) of the Income Tax Act 2007.
That the Income Tax Act 2007 be amended prospectively from the
next Income year.
Refer to Policy Advice Division for Policy review. |
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