Hon Dr Michael Cullen
Minister of Finance
Tax rules simplified for school board trustees
The government will legislate this year to simplify the tax requirements for fees paid to school board trustees, Revenue Minister Michael Cullen announced today.
"Trustees play a very valuable role in the community. As partial recompense for the time and effort they put in, they are paid a small fee or honorarium which often does not even cover their expenses.
"For tax purposes, fees amounting to less than $605 a year for trustees and $825 a year for chairpeople are not treated as income, so are not taxed.
"However, the law still requires them to file a tax return in relation to these fees, even though they may not have to file a return for anything else.
"To remove this unnecessary hassle and the associated compliance costs, the government plans to remove the legal requirement for trustees to file tax returns in these circumstances.
"Furthermore, I have asked the Finance and Expenditure Committee to expedite the issue by including the amendment in the December tax bill now before Parliament so that it can apply from the current income year instead of from 2002-03," Dr Cullen said.
Contact: Patricia Herbert [senior press secretary] 471-9412 or 021-270-9013. E-mail [email protected]