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CW 26D: Meaning of employee
or “This explains who is considered an employee when a company provides benefits”
You could also call this:

“How to calculate market value for tax purposes”

When you’re trying to understand the market value of something for tax purposes, it means two things. First, it’s the same as what ‘market value’ means in the main definitions section of the tax law. This is the usual way of figuring out how much something is worth.

Second, if you’re looking at shares or options that are listed on a stock exchange, there’s a special way to work out their value. You can use the average price over five days of trading, taking into account how many were bought and sold each day. This is called the ‘5-day volume weighted average price’. You can also use other methods that give similar results, as long as the tax office (the Commissioner) agrees they’re okay.

Remember, these rules are specifically for understanding market value when you’re dealing with section CW 26C of the tax law. This section talks about income from some kinds of employee share schemes.

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Next up: CW 26E: Meaning of normal retiring age

or “What counts as the normal age to retire for different workers”
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Part C Income
Exempt income

CW 26DBMeaning of market value

  1. For the purposes of section CW 26C, market value—

  2. has the same meaning as in section YA 1 (Definitions), definition of market value, paragraphs (a) and (b); and
    1. includes, for a share or option quoted on the official list of a recognised exchange, at the time, an amount equal to the 5-day volume weighted average price or any other method that is accepted by the Commissioner or is comparable to the 5-day volume weighted average price, for such shares or options.

      Notes
      • Section CW 26DB: inserted (with effect on 29 March 2018), on , by section 96 of the Taxation (KiwiSaver, Student Loans, and Remedial Matters) Act 2020 (2020 No 5).