Section RD 42 — Income Tax Act 2007: Goods at staff discount

RD 42 Goods at staff discount Goods discounted for employees (1) This section applies when an employer sells goods in the normal course of their business to an employee when all the following apply: (a) the retail price of identical goods is $200 or less to an arm’s length buyer in the open market in New Zealand in a sale freely offered and made on ordinary trade terms; and (b) the price of the goods to the employee is lower than their cost to the employer, the difference resulting from a staff discount that the employer normally provides to employees; and (c) at the time of the sale, the staff discount is no more than 5% of the price of identical goods in the circumstances referred to in paragraph (a). Cost of goods (2) The goods are treated as having been sold at a price equal to the cost of the goods to the employer. Defined in this Act: business , cost , employee , employer , identical goods , New Zealand , price , Compare: 2004 No 35 s ND 1N