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The latest Inland Revenue Interpretation Guideline and why you should care (9 February 2012) (New Zealand)

Kensington Swan

The application of the Employment Relations Act 2000 and different tax treatment are key reasons it is important to properly establish whether a person is an employee or an independent contractor.

Just before the Christmas break, Inland Revenue published a useful interpretation guideline which employers and employees should take a moment to consider. The guideline updates the IRD’s position on the issue of employment status, or more specifically, how employees and independent contractors are distinguished legally. We de-mystify this guideline.

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