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Income Tax Act 2007

Avoidance and non-market transactions - Avoidance: specific

GB 49B: Employee share schemes

You could also call this:

“Rules to prevent unfair tax advantages in employee share schemes”

You need to know about a rule for employee share schemes. This rule is there to stop people from trying to get around the rules about employee share schemes.

If someone makes a plan that tries to avoid how employee share schemes are supposed to work, or tries to change when the shares are taxed, the tax office can step in.

The tax office (called the Commissioner) can then decide how to classify the plan. They can also set a date for when the shares should be taxed. They do this to make sure people don’t get unfair tax advantages from their plan.

This rule helps make sure that employee share schemes are used fairly and that people pay the right amount of tax.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS94117.

Topics:
Money and consumer rights > Taxes
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Part G Avoidance and non-market transactions
Avoidance: specific

GB 49BEmployee share schemes

  1. This section applies when a person enters into an arrangement and the purpose or effect of the arrangement is to defeat the intent and application of the definition of employee share scheme or the definition of share scheme taxing date in relation to an employee share scheme.

  2. The Commissioner may classify the arrangement or set a share scheme taxing date as the Commissioner considers appropriate to counteract a tax advantage obtained by the person from or under the agreement.

Notes
  • Section GB 49B: inserted, on , by section 109 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).