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Income Tax Act 2007

Income - Employee or contractor income - Definitions

CE 10: Exit inducements

You could also call this:

“Money received for leaving a job or position is taxable income”

You can receive income for certain situations related to leaving a job or position. If you get money for any of these reasons, it counts as income:

You lose your job or career.

You lose a position you held.

You leave a position you had.

You lose your status in a job or role.

This means if someone pays you to stop doing your job or to give up your position, that money is considered income.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1512809.

Topics:
Money and consumer rights > Taxes
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"Rules about payments for agreeing not to do certain work in the future"

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CE 11: Proceeds from claims under policies of income protection insurance, or

"Payments from employer-provided income protection insurance are taxable income"

Part C Income
Employee or contractor income: Definitions

CE 10Exit inducements

  1. An amount is income of a person if they derive it for—

  2. the loss of a vocation; or
    1. the loss of a position; or
      1. leaving a position; or
        1. loss of status.

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