Section DC 3B — Income Tax Act 2007: Payments to working owners

DC 3B Payments to working owners Deduction (1) A person who has an effective look-through interest for a look-through company (an owner ) is allowed a deduction for their share of a payment made under a contract of employment to a working owner. Amount of deduction (2) The amount of the deduction is limited to the amount of the payment authorised by the contract of employment and any bonus, whether or not the payment of a bonus is authorised by the contract. Meaning of contract of employment (3) In this section, contract of employment , for a working owner, means an agreement that— (a) specifies the terms and conditions of the services to be performed by the working owner; and (b) specifies the amount payable to the working owner for the performance of the services; and (c) is in writing. Link with subpart DA (4) This section supplements the general permission. The general limitations still apply. Defined in this Act: amount , contract of employment , deduction , effective look-through interest , general limitation , general permission , look-through company , pay , supplement , working owner Section DC 3B: inserted, on 1 April 2011 (applying for income years beginning on or after 1 April 2011), by section 40(1) of the Taxation (GST and Remedial Matters) Act 2010 (2010 No 130).