Division 1 General concept of wages
(1) For the purposes of this Act, wages mean wages, remuneration, salary, commission, bonuses or allowances paid or payable to an employee, including:(a) an amount paid or payable by way of remuneration to a person holding an office under the Crown or in the service of the Crown, and(b) an amount paid or payable under any prescribed classes of contracts to the extent to which that payment is attributable to labour, and(c) an amount paid or payable by a company by way of remuneration to or in relation to a director of that company, and(d) an amount paid or payable by way of commission to an insurance or time-payment canvasser or collector, and(e) an amount that is included as or taken to be wages by any other provision of this Act.(2) For the purposes of this Act, wages, remuneration, salary, commission, bonuses or allowances are wages:(a) whether paid or payable at piece work rates or otherwise, and(b) whether paid or payable in cash or in kind.(3) This Act applies in respect of wages referred to in subsection (1) (a)–(e) that are paid or payable to or in relation to a person who is not an employee in the same way as it applies to wages paid or payable to an employee (as if a reference in this Act to an employee included a reference to any such person).
14 Wages include fringe benefits
(1) For the purposes of this Act, wages include a fringe benefit.(2) Subsection (1) does not apply to benefits that are exempt benefits for the purposes of the FBTA Act (other than deposits to the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth).
15 Value of wages comprising fringe benefits
(1) For the purposes of this Act, the value of wages comprising a fringe benefit is to be determined in accordance with the formula:
where:TV is the value that would be the taxable value of the benefit as a fringe benefit for the purposes of the FBTA Act.
FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(2) In this Act, a reference to taxable wages that were paid or payable by an employer during a month is, in relation to taxable wages comprising fringe benefits:(a) a reference to the value of the fringe benefits paid or payable by the employer during the month, or(b) if an election by the employer is in force under section 16, a reference to an amount calculated in accordance with that section.(3) In this Act, a reference to taxable wages that were paid or payable by an employer during a year is, in relation to taxable wages comprising fringe benefits, a reference to an amount calculated by adding together the amounts under subsection (2) (a) or (b) (or subsection (2) (a) and (b)) as the case requires, for the months of that year.
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16 Employer election regarding taxable value of fringe benefits
(1) An employer who has paid or is liable to pay fringe benefits tax imposed by the FBTA Act in respect of a period of not less than 15 months before 30 June in any year may elect to include as the value of the fringe benefits paid or payable by the employer during the month concerned:(a) in a return lodged in relation to each of the first 11 months occurring after 30 June in that year—1/12 of the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding the commencement of the current financial year, and(b) in the return lodged in relation to the 12th month—the amount determined in accordance with subsection (2) or that part of that amount as, in accordance with section 10, comprises taxable wages for the year of tax (within the meaning of the FBTA Act) ending on 31 March preceding that month, less the total of the amounts of fringe benefits included in the returns for each of the preceding 11 months.(2) The amount determined in accordance with this subsection is to be determined in accordance with the formula:
where:AFBA is the aggregate fringe benefits amount within the meaning of section 136 of the FBTA Act.
FBT rate is the rate of fringe benefits tax imposed by the FBTA Act that applies when the liability to payroll tax under this Act arises.
(3) An election under subsection (1) takes effect when it is notified to the Chief Commissioner in the form approved by the Chief Commissioner.(4) After an employer has made an election under subsection (1), the employer must lodge returns containing amounts calculated in accordance with the election unless the Chief Commissioner approves, by notice in writing given to the employer, the termination of the election and allows the employer to include the value referred to in section 15 (2) (a).(5) If an employer ceases to be liable to pay payroll tax, the value of taxable wages comprising fringe benefits to be included in the employer’s final return is (irrespective of whether or not the employer has made an election under subsection (1)) the value of the fringe benefits paid or payable by the employer for the period commencing on and including the preceding 1 July until the date on which the employer ceases to be liable to payroll tax, less the value of the fringe benefits paid or payable by the employer during that period on which payroll tax has been paid.
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Division 3 Superannuation contributions
17 Wages include superannuation contributions
(1) For the purposes of this Act, wages include a superannuation contribution.(2) A superannuation contribution is a contribution paid or payable by an employer in respect of an employee:(a) to or as a superannuation fund within the meaning of the Superannuation Industry (Supervision) Act 1993 of the Commonwealth, or(b) as a superannuation guarantee charge within the meaning of the Superannuation Guarantee (Administration) Act 1992 of the Commonwealth, or(c) to or as any other form of superannuation, provident or retirement fund or scheme including:(i) the Superannuation Holding Accounts Special Account within the meaning of the Small Superannuation Accounts Act 1995 of the Commonwealth, and(ii) a retirement savings account within the meaning of the Retirement Savings Accounts Act 1997 of the Commonwealth, and(iii) a wholly or partly unfunded fund or scheme.(3) Setting aside any money or anything that is worth money as, or as part of, a superannuation fund, superannuation guarantee charge or any other form of superannuation, provident or retirement fund or scheme is taken to be paying a superannuation contribution.(4) Making a superannuation contribution of anything that is worth money is taken to be paying a superannuation contribution of the amount equal to its value, and its value is to be worked out in accordance with section 43 as if that section referred to the contribution instead of to wages.(5) A superannuation, provident or retirement fund or scheme is unfunded to the extent that money paid or payable by an employer in respect of an employee covered by the fund or scheme is not paid or payable during the employee’s period of service with the employer.(6) In this section:employee includes any person to whom, by virtue of a paragraph of the definition of wages in section 13 (1), an amount paid or payable in the circumstances referred to in that paragraph constitutes wages.
18 Inclusion of grant of shares and options as wages
(1) For the purposes of this Act, wages include the grant of a share or option to an employee by an employer in respect of services performed by the employee.(2) Any such wages are taken, for the purpose of the imposition of payroll tax, to be paid or payable on the relevant day.(3) For the purposes of this Division, the relevant day is the day that the employer elects in accordance with this Division to treat as the day on which the wages are paid or payable.(4) To avoid doubt, the grant of a share or option is valuable consideration for the purposes of section 46.
(1) The employer can elect to treat as the relevant day either the date on which the share or option is granted to the employee or the vesting date.(2) A share or option is granted to a person in the following circumstances:(a) in the case of a share—if the person acquires the share (within the meaning of section 139G of the Income Tax Assessment Act 1936 of the Commonwealth) or in the circumstances prescribed by the regulations under this Act,(b) in the case of an option—if the person acquires a right (within the meaning of section 139G of the Income Tax Assessment Act 1936 of the Commonwealth) to the share to which the option relates or in the circumstances prescribed by the regulations under this Act.(3) The vesting date in respect of a share is the date on which the share vests in the employee (that is, when any conditions applying to the grant of the share have been met and the employee’s legal or beneficial interest in the share cannot be rescinded).(4) The vesting date in respect of an option is one of the following dates (whichever happens first):(a) the date on which the share to which the option relates is granted to the employee,(b) the date on which the employee exercises a right under the option to have the share the subject of the option transferred to, allotted to or vest in him or her.
20 Deemed choice of relevant day in special cases
(1) If an employer grants a share or an option to an employee and the value of the grant of the share or option is not included in the taxable wages of the employer for the financial year in which the share or option was granted, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the vesting date.(2) If an employer grants a share or an option to an employee and the value of the grant of the share or option is nil or, if the employer were to elect to treat the date of grant as the relevant day, the wages constituted by the grant would not be liable to payroll tax, the employer is taken to have elected to treat the wages constituted by the grant of that share or option as being paid or payable on the date on which the share or option was granted.
21 Effect of rescission, cancellation of share or option
(1) If the grant of a share or option is withdrawn, cancelled or exchanged before the vesting date for any valuable consideration (other than the grant of other shares or options), the following provisions apply:(a) the date of withdrawal, cancellation or exchange is taken to be the vesting date of the share or option,(b) the market value of the share or option, on the vesting date, is taken to be the amount of the valuable consideration (and, accordingly, that amount is the amount paid or payable as wages on that date).(2) If an employer includes the value of a grant of a share or option in the taxable wages of the employer for a financial year and the grant is rescinded because the conditions attaching to the grant were not met, the taxable wages of the employer, in the financial year in which the grant is rescinded, are to be reduced by the value of the grant as previously included in the taxable wages of the employer.(3) Subsection (2) does not apply just because an employee fails to exercise an option or to otherwise exercise his or her rights in respect of a share or option.
22 Grant of share pursuant to exercise of option
The grant of the share by an employer does not constitute wages for the purposes of this Act if the employer is required to grant the share as a consequence of the exercise of an option by a person and:(a) the grant of the option to the person constitutes wages for the purposes of this Act, or(b) the option was granted to the person before 1 July 2003.
23 Value of shares and options
(1) If the grant of a share or option constitutes wages under this Division, the amount paid or payable as wages is taken, for the purposes of this Act, to be the market value of the share or option (expressed in Australian currency) on the relevant day, less the consideration (if any) paid or given by the employee in respect of the share or option (other than consideration in the form of services performed).(2) The market value of a share or option on the relevant day is to be determined in accordance with the Commonwealth income tax provisions.(3) For that purpose, the Commonwealth income tax provisions apply with the following modifications, and any other necessary modifications:(a) the market value of an option is to be determined as if it were a right to acquire a share,(b) a reference to a taxpayer is to be read as a reference to the employee,(c) a reference to the Commissioner of Taxation is to be read as a reference to either that Commissioner or the Chief Commissioner of State Revenue.(4) Section 15 does not apply to the grant of a share or option that constitutes wages, even if it constitutes a fringe benefit.(5) In this section:Commonwealth income tax provisions means the provisions of Subdivision F of Division 13A of Part III of the Income Tax Assessment Act 1936 of the Commonwealth.
24 Inclusion of shares and options granted to directors as wages
(1) For the purposes of this Act, wages include the grant of a share, or option, by a company to a director of the company by way of remuneration for the appointment or services of the director that would be wages under this Division if the director were an employee of the company.(2) For that purpose, the other provisions of this Division apply in respect of any such grant as if a reference to the employer were a reference to the company and a reference to the employee were a reference to the director of the company.(3) In this section, a reference to a director of the company includes a reference to the following:(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company,(b) a former director of the company.(4) (Repealed)Note. Section 13 provides that a reference to an employee in this Act includes a reference to any person to whom any amount that is treated as wages under this Act is paid or payable. See also section 11, which deems the wages to be paid or payable for services performed.
26 Place where wages are payable
(1) The wages constituted by the grant of the share or option are taken to be paid or payable in this jurisdiction if the share is a share in a local company or, in the case of an option, an option to acquire shares in a local company.(2) In any other case, the wages constituted by the grant of the share or option are taken to be paid or payable outside this jurisdiction.Note. The place where wages are paid or payable is sometimes relevant to determining whether the wages are liable to payroll tax under this Act. See section 11.(3) In this section:local company means:
(a) a company incorporated or taken to be incorporated under the Corporations Act 2001 of the Commonwealth that is taken to be registered in this jurisdiction for the purposes of that Act, or(b) any other body corporate that is incorporated under an Act of this jurisdiction.
Division 5 Termination payments
In this Division:employment termination payment means:
(a) an employment termination payment within the meaning of section 82-130 of the ITAA, or(b) a payment that would be an employment termination payment within the meaning of section 82-130 of the ITAA but for the fact that it was received later than 12 months after the termination of a person’s employment, or(c) a transitional termination payment within the meaning of section 82-10 of the Income Tax (Transitional Provisions) Act 1997 of the Commonwealth.termination payment means:
(a) a payment made in consequence of the retirement from, or termination of, any office or employment of an employee, being:(i) an unused annual leave payment, or(ii) an unused long service leave payment, or(iii) so much of an employment termination payment paid or payable by an employer, whether or not paid to the employee or to any other person or body, that would be included in the assessable income of an employee under Part 2-40 of the ITAA if the whole of the employment termination payment had been paid to the employee, or(b) an amount paid or payable by a company as a consequence of the termination of the services or office of a director of the company, whether or not paid to the director or to any other person or body, that would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment, or(c) an amount paid or payable by a person who is an employer under a relevant contract (within the meaning of section 32) as a consequence of the termination of the supply of the services of an employee under the contract, whether or not paid to the employee or to any other person, if the amount would be an employment termination payment if that amount had been paid or payable as a consequence of termination of employment.unused annual leave payment has the same meaning as in section 83-10 of the ITAA.
unused long service leave payment has the same meaning as in section 83-75 of the ITAA.
For the purposes of this Act, wages include a termination payment.
(1) For the purposes of this Act, wages, in respect of a financial year, do not include the exempt component of a motor vehicle allowance paid or payable in respect of that year.(2) Accordingly, if the total motor vehicle allowance paid or payable to an employee in respect of a financial year does not exceed the exempt component, the motor vehicle allowance is not wages for the purposes of this Act.(3) If the total motor vehicle allowance paid or payable to an employee in respect of a financial year exceeds the exempt component (if any), only that amount that exceeds the exempt component of the motor vehicle allowance is included as wages for the purposes of this Act.(4) The exempt component of a motor vehicle allowance paid or payable in respect of a financial year is calculated in accordance with the formula:
where:E is the exempt component.
K is the number of business kilometres travelled during the financial year.
R is the exempt rate.
(5) The number of business kilometres travelled during the financial year (“K”) is to be determined in accordance with the continuous recording method, or the averaging method, whichever method is selected and used by the employer in accordance with Part 5 of Schedule 1.(6) The Chief Commissioner, by order in writing, may approve the use, by an employer or class of employer, of another method of determining the number of business kilometres travelled during the financial year (including the use of an estimate). If so, the number of business kilometres travelled during the financial year is to be determined in accordance with the method approved by the Chief Commissioner.(7) For the purposes of this section, the exempt rate for the financial year concerned is:(a) the rate prescribed by the regulations under section 28-25 of the ITAA for calculating a deduction for car expenses for a large car using the “cents per kilometre method” in the financial year immediately preceding the financial year in which the allowance is paid or payable, or(b) if no rate referred to in paragraph (a) is prescribed, the rate prescribed by the regulations under this Act.
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(1) For the purposes of this Act, wages do not include an accommodation allowance paid or payable to an employee in respect of a night’s absence from the person’s usual place of residence that does not exceed the exempt rate.(2) If the accommodation allowance paid or payable to an employee in respect of a night’s absence from the person’s usual place of residence exceeds the exempt rate, wages include that allowance only to the extent that it exceeds the exempt rate.(3) For the purposes of this section, the exempt rate for the financial year concerned is:(a) the total reasonable amount for daily travel allowance expenses using the lowest capital city for the lowest salary band for the financial year determined by the Commissioner of Taxation of the Commonwealth, or(b) if no determination referred to in paragraph (a) is in force, the rate prescribed by the regulations.
Division 7 Contractor provisions
In this Division:contract includes an agreement, arrangement or undertaking, whether formal or informal and whether express or implied.
relevant contract has the meaning given in section 32.
re-supply of goods acquired from a person includes:
(a) a supply to the person of goods in an altered form or condition, and(b) a supply to the person of goods in which the first-mentioned goods have been incorporated.services includes results (whether goods or services) of work performed.
supply includes supply by way of sale, exchange, lease, hire or hire-purchase, and in relation to services includes the providing, granting or conferring of services.
32 What is a relevant contract?
(1) In this Division, a relevant contract in relation to a financial year is a contract under which a person (the designated person) during that financial year, in the course of a business carried on by the designated person:(a) supplies to another person services for or in relation to the performance of work, or(b) has supplied to the designated person the services of persons for or in relation to the performance of work, or(c) gives out goods to natural persons for work to be performed by those persons in respect of those goods and for re-supply of the goods to the designated person or, where the designated person is a member of a group, to another member of that group.(2) However, a relevant contract does not include a contract of service or a contract under which a person (the designated person) during a financial year in the course of a business carried on by the designated person:(a) is supplied with services for or in relation to the performance of work that are ancillary to the supply of goods under the contract by the person by whom the services are supplied or to the use of goods which are the property of that person, or(b) is supplied with services for or in relation to the performance of work where:(i) those services are of a kind not ordinarily required by the designated person and are performed by a person who ordinarily performs services of that kind to the public generally, or(ii) those services are of a kind ordinarily required by the designated person for less than 180 days in a financial year, or(iii) those services are provided for a period that does not exceed 90 days or for periods that, in the aggregate, do not exceed 90 days in that financial year and are not services:(A) provided by a person by whom similar services are provided to the designated person, or(B) for or in relation to the performance of work where any of the persons who perform the work also perform similar work for the designated person,for periods that, in the aggregate, exceed 90 days in that financial year, or(iv) those services are supplied under a contract to which subparagraphs (i)–(iii) do not apply and the Chief Commissioner is satisfied that those services are performed by a person who ordinarily performs services of that kind to the public generally in that financial year, or(c) is supplied by a person (the contractor) with services for or in relation to the performance of work under a contract to which paragraphs (a) and (b) do not apply where the work to which the services relate is performed:(i) by two or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or(ii) where the contractor is a partnership of two or more natural persons, by one or more of the members of the partnership and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor, or(iii) where the contractor is a natural person, by the contractor and one or more persons employed by, or who provide services for, the contractor in the course of a business carried on by the contractor,unless the Chief Commissioner determines that the contract or arrangement under which the services are so supplied was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person, or(d) is supplied with:(i) services ancillary to the conveyance of goods by means of a vehicle provided by the person conveying them, or(ii) services solely for or in relation to the procurement of persons desiring to be insured by the designated person, or(iii) services for or in relation to the door-to-door sale of goods solely for domestic purposes on behalf of the designated person,unless the Chief Commissioner determines that the contract or arrangement under which the services are so supplied was entered into with an intention either directly or indirectly of avoiding or evading the payment of tax by any person.(3) For the purposes of this section, an employment agency contract under which services are supplied by an employment agent, or a service provider is procured by an employment agent, is not a relevant contract.
33 Persons taken to be employers
(1) For the purposes of this Act, a person:(a) who during a financial year, under a relevant contract, supplies services to another person, or(b) to whom during a financial year, under a relevant contract, the services of persons are supplied for or in relation to the performance of work, or(c) who during a financial year, under a relevant contract, gives out goods to other persons,is taken to be an employer in respect of that financial year.(2) If a contract is a relevant contract under both section 32 (1) (a) and (b):(a) the person to whom, under the contract, the services of persons are supplied for or in relation to the performance of work is taken to be an employer, and(b) despite subsection (1) (a), the person who under the contract supplies the services is taken not to be an employer.
34 Persons taken to be employees
For the purposes of this Act, a person who during a financial year:(a) performs work for or in relation to which services are supplied to another person under a relevant contract, or(b) being a natural person, under a relevant contract, re-supplies goods to an employer,is taken to be an employee in respect of that financial year.
35 Amounts under relevant contracts taken to be wages
(1) For the purposes of this Act, amounts paid or payable by an employer during a financial year for or in relation to the performance of work relating to a relevant contract or the re-supply of goods by an employee under a relevant contract are taken to be wages paid or payable during that financial year.(2) If an amount referred to in subsection (1) is included in a larger amount paid or payable by an employer under a relevant contract during a financial year, that part of the larger amount which is not attributable to the performance of work relating to the relevant contract or the re-supply of goods by an employee under the relevant contract is as determined by the Chief Commissioner.(3) An amount paid or payable for or in relation to the performance of work under a relevant contract is taken to include:(a) any payment made by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be a superannuation contribution if made in relation to a person in the capacity of an employee, and(b) the value of any share or option (not otherwise included as wages under this Act) provided or liable to be provided by a person who is taken to be an employer under a relevant contract in relation to a person who is taken to be an employee under the relevant contract that would be included as wages under Division 4 if provided to a person in the capacity of an employee.
If, in respect of a payment for or in relation to the performance of work that is taken to be wages under this Division, payroll tax is paid by a person taken under this Division to be an employer:(a) no other person is liable to payroll tax in respect of that payment, and(b) if another person is liable to make a payment for or in relation to that work, that person is not liable to payroll tax in respect of that payment unless it or the payment by the first-mentioned person is made with an intention either directly or indirectly of avoiding or evading the payment of tax whether by the first-mentioned person or another person.
(1) For the purposes of this Act, an employment agency contract is a contract, whether formal or informal and whether express or implied, under which a person (an employment agent) procures the services of another person (a service provider) for a client of the employment agent.(2) However, a contract is not an employment agency contract for the purposes of this Act if it is, or results in the creation of, a contract of employment between the service provider and the client.(3) In this section:contract includes agreement, arrangement and undertaking.
38 Persons taken to be employers
For the purposes of this Act, the employment agent under an employment agency contract is taken to be an employer.
39 Persons taken to be employees
For the purposes of this Act, the person who performs work for or in relation to which services are supplied to the client under an employment agency contract is taken to be an employee of the employment agent.
(1) For the purposes of this Act, the following are taken to be wages paid or payable by the employment agent under an employment agency contract:(a) any amount paid or payable to or in relation to the service provider in respect of the provision of services in connection with the employment agency contract,(b) the value of any benefit provided for or in relation to the provision of services in connection with the employment agency contract that would be a fringe benefit if provided to a person in the capacity of an employee,(c) any payment made in relation to the service provider that would be a superannuation contribution if made in relation to a person in the capacity of an employee.(2) Subsection (1) does not apply to an employment agency contract to the extent that an amount, benefit or payment referred to in that subsection would be exempt from payroll tax under Part 4 (other than under Division 4 or 5 of that Part, section 50 or clause 5 of Schedule 2) had the service provider been paid by the client as an employee, if the client has given a declaration to that effect, in the form approved by the Chief Commissioner, to the employment agent.
Subject to section 42, if an employment agent under an employment agency contract:(a) by arrangement procures the services of a service provider for a client of the employment agent, and(b) pays payroll tax in respect of an amount, benefit or payment that is, under section 40, taken to be wages paid or payable by the employment agent in respect of the provision of those services in connection with that contract,no other person (including any other person engaged to procure the services of the service provider for the employment agent’s client as part of the arrangement) is liable to pay payroll tax in respect of wages paid or payable for the procurement or performance of those services by the service provider for the client.
42 Agreement to reduce or avoid liability to payroll tax
(1) If the effect of an employment agency contract is to reduce or avoid the liability of any party to the contract to the assessment, imposition or payment of payroll tax, the Chief Commissioner may:(a) disregard the contract, and(b) determine that any party to the contract is taken to be an employer for the purposes of this Act, and(c) determine that any payment made in respect of the contract is taken to be wages for the purposes of this Act.(2) If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice of the determination on the person taken to be an employer for the purposes of this Act.(3) The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.(4) This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.
43 Value of wages paid in kind
The value of wages (except fringe benefits and shares and options) that are paid or payable in kind is the greater of:(a) the value agreed or attributed to the wages in, or ascertainable for the wages from, arrangements between the employer and the employee, whichever is the greater, and(b) if the regulations prescribe how the value of wages of that type is to be determined—the value determined in accordance with the regulations.
(1) If a person is liable to pay GST on the supply to which wages paid or payable to the person relate, the amount or value of those wages on which payroll tax is payable is the amount or value of the wages paid or payable to the person minus the relevant proportion of the amount of GST payable by the person on the supply to which the wages relate.(2) Subsection (1) does not apply in respect of the value of wages comprising a fringe benefit.(3) In this section:consideration has the same meaning as in the A New Tax System (Goods and Services Tax) Act 1999 of the Commonwealth.
relevant proportion, in relation to GST payable on a supply to which wages relate, means the proportion that the amount or value of the wages bears to the consideration for the supply to which the wages relate.
45 Wages paid by group employers
A reference in this Act to wages paid or payable by a member of a group includes wages that would be taken to be paid or payable by a member of a group if the member were the employer of the employee to whom the wages were paid.
46 Wages paid by or to third parties
(1) If any of the following amounts of money or other valuable consideration would, if paid or given or to be paid or given directly by an employer to an employee, be or be included as wages paid or payable by the employer to the employee for the purposes of this Act, they are taken to be wages paid or payable by the employer to the employee:(a) any money or other valuable consideration paid or given, or to be paid or given, to an employee, for the employee’s services as an employee of an employer, by a person other than the employer,(b) any money or other valuable consideration paid or given, or to be paid or given, by an employer, for an employee’s services as the employee of the employer, to a person other than the employee,(c) any money or other valuable consideration paid or given, or to be paid or given, by a person other than an employer, for an employee’s services as an employee of the employer, to a person other than the employee.(2) If any of the following amounts of money or other valuable consideration would, if paid or given or to be paid or given directly by a company to a director of the company, be or be included as wages paid or payable by the company to the director for the purposes of this Act, they are taken to be wages paid or payable by the company to the director:(a) any money or other valuable consideration paid or given, or to be paid or given, to a director of a company, by way of remuneration for the appointment or services of the director to the company, by a person other than the company,(b) any money or other valuable consideration paid or given, or to be paid or given, by a company, by way of remuneration for the appointment or services of the director to the company, to a person other than the director,(c) any money or other valuable consideration paid or given, or to be paid or given, by any person, by way of remuneration for the appointment or services of a director to the company, to a person other than the director.(3) In this section, director of a company includes:(a) a person who, under a contract or other arrangement, is to be appointed as a director of the company, and(b) a former director of the company.
47 Agreement etc to reduce or avoid liability to payroll tax
(1) If any person enters into any agreement, transaction or arrangement, whether in writing or otherwise, under which a natural person performs, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing the services and the effect of the agreement, transaction or arrangement is to reduce or avoid the liability of any person to the assessment, imposition or payment of payroll tax, the Chief Commissioner may:(a) disregard the agreement, transaction or arrangement, and(b) determine that any party to the agreement, transaction or arrangement is taken to be an employer for the purposes of this Act, and(c) determine that any payment made in respect of the agreement, transaction or arrangement is taken to be wages for the purposes of this Act.(2) If the Chief Commissioner makes a determination under subsection (1), the Chief Commissioner must serve a notice to that effect on the person taken to be an employer for the purposes of this Act.(3) The notice must set out the facts on which the Chief Commissioner relies and the reasons for the determination.(4) This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.