Threshold for attribution of personal services income
(67 – New Zealand Institute of Chartered Accountants)
Section GB 27(2)(c) attributes income from personal services to the individual performing the services in certain circumstances. The bill proposes to raise the threshold at which the rules apply to $70,000 in 2009, $75,000 in 2010, and to $80,000 in 2011. However, the amendments relating to 2010 and 2011 should not apply.
The threshold at which the personal services attribution rules apply is intended to be the same as the threshold at which the top tax rate begins to apply. As a result of the Taxation (Urgent Measures and Annual Rates) Act, the threshold is not changing in 2010 or 2011. Accordingly, the threshold at which the personal services attribution rules apply should be $70,000.
That the submission be accepted.