Section 15 — Injury Prevention, Rehabilitation, and Compensation Act 2001: Earnings as a shareholder-employee

15 Earnings as a shareholder-employee (1) Earnings as a shareholder-employee , in relation to a person who is a shareholder-employee and any tax year, means— (a) the amount described in subsection (2) ( the subsection (2) amount ); or (b) the amount described in subsection (3) ( the subsection (3) amount ), if the Corporation decides that the subsection (2) amount is not a reasonable representation of the person's earnings as a shareholder-employee in the tax year. (2) The subsection (2) amount is— (a) all PAYE income payments of the person for the income year derived from a company of which the person is a shareholder-employee; and (b) all income of the person that is deemed to be income derived otherwise than from PAYE income payments under section RD 3(2) to (4) of the Income Tax Act 2007. (3) The subsection (3) amount is an amount determined by the Corporation in the following way: (a) first, determine each of the following amounts: (i) an amount that represents reasonable remuneration for the services that the person provides to the company as an employee of the company in the tax year; and (ii) an amount that represents reasonable remuneration for the services that the person provides as a director of the company in the tax year; and (b) second, add the amounts described in paragraph (a)(i) and (ii) , and the result is the subsection (3) amount . (4) The earnings as an employee of the person as an employee of the company are the amount described in subsection (3)(a)(i) . (5) The director's fees of the person as a director of the company are the amount described in subsection (3)(a)(ii) . (6) The dividend of the person as a shareholder of the company is determined by the Corporation in the following way: (a) first, determine the total amount the company pays or provides to the person in any capacity in the tax year; and (b) second, deduct the subsection (3) amount from that total amount, and the result is the dividend of the person as a shareholder of the company and is not earnings of the person. Compare: 1998 No 114 s 21 Subsection (1) was amended, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35) by substituting the words “ tax year ” for the words “ income year ” in all places in which they appear. Section 15(2)(a): amended, on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97). Section 15(2)(b): amended, on 1 April 2008, by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97). Subsection (2)(b) was amended, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35) by substituting the words “ Income Tax Act 2004 ” for the words “ Income Tax Act 1994 ” . Subsection (3) was amended, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35) by substituting the words “ tax year ” for the words “ income year ” in all places in which they appear. Subsection (6) was amended, as from 1 April 2005, by section YA 2 Income Tax Act 2004 (2004 No 35) by substituting the words “ tax year ” for the words “ income year ” .