Section Sch3-15 — Social Security Act 2018: Rules on how MSD determines income of people engaged in business or trade

15 Rules on how MSD determines income of people engaged in business or trade (1) The Governor-General may, by Order in Council, make rules— (a) prescribing how MSD is to assess and determine for the purposes of this Act the income of all or any of the following: (i) self-employed people: (ii) people carrying on business in a partnership: (iii) people trading as a small business: (iv) directors of a company: (v) people carrying on business or trade through a company of which they are— (A) a director and a shareholder; or (B) an employee and a shareholder; or (C) a director, a shareholder, and an employee: (vi) people otherwise engaged in business or trade; and (b) prescribing the circumstances in which those rules apply. (2) Rules made under subclause (1) may prescribe for the purposes of this Act all or any of the following: (a) the kinds of deduction from income allowed under the Income Tax Act 2007 that are to be disregarded in determining income, and— (i) the circumstances in which the deductions are to be disregarded; and (ii) whether the deductions are to be disregarded wholly or in part only: (b) how income is to be calculated if business accounts are presented in cash or accrual form: (c) livestock valuation methods, and their treatment, in calculating income: (d) the extent (if any) to which, and circumstances in which, all or any of the following are to be treated as a person’s income: (i) the person’s drawings from a business or trade: (ii) goods or services supplied to the person by a business or trade: (iii) distributions to the person from a business or trade: (iv) income from a business or trade by the person: (e) how it is to be determined whether a person has used assets of a business or trade for no consideration or inadequate consideration: (f) how a person’s income is to be determined if the person has used assets of a business or trade for no consideration or inadequate consideration: (g) the extent (if any) to which depreciation or other provision for replacement of capital assets is to be— (i) allowed as a deduction from income; or (ii) disregarded in calculating income: (h) the extent (if any) to which, and circumstances in which, either or both of the following are to be treated as income: (i) distributions from a company: (ii) retained profits of a company: (i) the treatment of look-through companies (within the meaning of the Income Tax Act 2007 ). (3) Subclause (2)(d) applies to businesses and trades however they are carried on. (4) Subclause (3) does not limit subclause (1). (5) Rules made under subclause (1), if those rules reduce the income of people, have effect in respect of any income specified in the rules on and after a date that is— (a) specified in the rules; and (b) earlier than, the same as, or later than, the date on which the rules are made. Compare: 1964 No 136 s 132H