Plain language law

New Zealand law explained for everyone

MK 14: Employees opting out
or “Employees can no longer choose to not receive tax credits in cash”

You could also call this:

“How certain groups are treated as one employer for tax credit purposes”

When it comes to tax credits paid in cash, certain groups of people are treated as if they were one employer. This applies to three different situations:

If you have two or more companies that are part of the same group, they are considered as one employer.
If you are in a partnership, all the partners in that partnership are treated as one employer.
In cases where property is managed by someone else, like when someone has died, or there’s a trust, or a company is closing down, or property has been given away, all the people who are looking after that property are treated as one employer.

This rule helps to simplify how tax credits are handled for these groups of people or businesses.

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Next up: MK 16: Private domestic workers

or “Tax rules for people who employ themselves as domestic workers”

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Income Tax Act 2007
Tax credits paid in cash
MK 15: Groups of persons

Part M Tax credits paid in cash
Tax credits for KiwiSaver schemes and complying superannuation funds

MK 15Groups of persons

For the purposes of this subpart, a group of persons described in 1 of the following paragraphs is treated as 1 employer:
2 or more companies, if the companies are a group of companies; and
all partners in a partnership; and
all persons in whom property has become vested, or to whom the control of property has passed in the case of an estate of a deceased person, or a trust, or a company in liquidation, or an assigned estate, or other case in which property is vested or controlled in a fiduciary capacity.

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