Plain language law

New Zealand law explained for everyone

DD 10: Interpretation: reimbursement and apportionment
or “How to treat employee reimbursements and split costs for entertainment expenses”

You could also call this:

“Definitions of key terms related to deductions in the Income Tax Act”

In this part of the law, you’ll find some important words explained. These words are used when talking about deductions in the Income Tax Act 2007.

‘Business’ means any activity that earns money regularly. This could be things like running a shop, selling products online, or providing a service.

‘Business contacts’ are people or groups that are important to a business. These include:

The business’s clients, customers, shareholders, other people who provide money, and suppliers
The same types of people for any business that’s closely connected to this one

If the business is a partnership, ‘business contacts’ doesn’t include the other partners in that partnership.

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Next up: DE 1: What this subpart does

or “This subpart explains how to calculate business use of a personal vehicle”

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Notes

Section DD 11 business premises: repealed (with effect on 27 March 2021), on 31 March 2023, by section 39 of the Taxation (Annual Rates for 2022–23, Platform Economy, and Remedial Matters) Act 2023 (2023 No 5).