Risk of unintended non-compliance Employer responsible for declaring Risk of unintended consequences if rework of the EMS by Inland if the employer chooses not to any ESS benefits entitlements the employer chooses not to Revenue. withhold and the employee is accruing to ex-employees. withhold and the employee is unaware of their tax obligations. unaware of obligations under the Income Tax Act 2007. Election is more expensive for Inland Revenue to administer. Mitigating factors Employee share agreement should Employer can elect not to withhold Inland Revenue captures income Additional legislative change to clearly articulate the employee’s tax tax. information ESS using the ensure ESS benefits do not for obligations. EMS. the purposes of the ACC earners’ levy and Kiwisaver. Inland Revenue to develop a suitable communications strategy to inform employers about their obligations. Conclusion: Takes into account employers’ compliance cost concerns about shifting the obligation to collect tax at source and improves the integrity of the tax system by using the PAYE system to improve the collection of information about employee entitlements under an ESS.
Risk of unintended non-compliance if the employer chooses not to withhold and the employee is unaware of their tax obligations. Employer responsible for declaring any ESS benefits entitlements accruing to ex-employees. Risk of unintended consequences if the employer chooses not to withhold and the employee is unaware of obligations under the Income Tax Act 2007. Election is more expensive for Inland Revenue to administer. rework of the EMS by Inland Revenue. Mitigating factors Employee share agreement should clearly articulate the employee’s tax obligations. Inland Revenue to develop a suitable communications strategy to inform employers about their obligations. Employer can elect not to withhold tax. Inland Revenue captures income information ESS using the EMS. Additional legislative change to ensure ESS benefits do not for the purposes of the ACC earners’ levy and Kiwisaver. Conclusion: Takes into account employers’ compliance cost concerns about shifting the obligation to collect tax at source and improves the integrity of the tax system by using the PAYE system to improve the collection of information about employee entitlements under an ESS.
2015-ris-tfpsom-bill-1.docx