Section RD 43 — Income Tax Act 2007: Goods on special with staff discount

RD 43 Goods on special with staff discount Sale of identical goods (1) This section applies when an employer sells goods to an employee on a day when the employer is offering identical goods for sale in the normal course of their business at a special price and when all the following apply: (a) the price of the 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 offers to the employee in addition to any other discount; and (c) just before or after the sale to the employee, a reasonable quantity of the identical goods is available in the open market in New Zealand; and (d) the price is at least 95% of the cost of the goods to the employer, or at least 95% of the price on the day of the sale of the identical goods to the public in the open market in New Zealand, whichever is less. 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 1O