sec.13LAParticular avoidance arrangements involving employment agents

### sec.13LA Particular avoidance arrangements involving employment agents This section applies if— an avoidance arrangement exists in relation to an employment agency in a return period; and the assumed non-adjusted tax and levy for the period is less than the assumed adjusted tax and levy for the period. If this section applies in a return period, for the period— if the avoidance arrangement involves an employment agent acting as trustee for a client of the employment agent under a trust or acting as agent for a client of the employment agent under an employment agency contract— section 92 (1) does not apply to the trustee or agent, or in relation to the trust or employment agency contract; and if the avoidance arrangement involves a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients—the client or clients is or are taken not to have the controlling interest; and the employment agent, or each employment agent, involved in the employment agency is answerable as an employer for doing everything required to be done under this Act for the payment of wages by the employment agent that are subject to payroll tax or the mental health levy under this Act (including the giving of returns and payment of payroll tax or the mental health levy); and if the employment agency involves more than 1 employment agent—the employment agents constitute a group. For this section, a client has, or clients have, a controlling interest in a business if the client has, or the clients have, a controlling interest in the business under section 71 . In subsection (1) — a reference to the assumed non-adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated without applying any resultant provision; and a reference to the assumed adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated applying each relevant resultant provision. To remove any doubt about the application of subsection (4) (b) , it is declared that if an employment agency is involved in more than 1 avoidance arrangement in a return period, subsection (4) (b) is to be applied by first applying each relevant resultant provision to each avoidance arrangement and then calculating the total amount for the subsection. In this section— avoidance arrangement means an arrangement involving an employment agency if the arrangement involves 1 or more of the following— an employment agent acting as trustee for a client of the employment agent under a trust; an employment agent acting as agent for a client of the employment agent under an employment agency contract; a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients. client includes an individual or company that— under the Duties Act 2001 , section 164 , is a related person of the client; or is related to the client in another way prescribed under a regulation. employment agency means a business enterprise involving— the business of an employment agent; or the businesses of 2 or more employment agents. employment agency contract see the definition employment agent for this section. employment agent means a person who, by a contract, agreement, arrangement or undertaking (the employment agency contract ), procures the services of another person (the worker ) for a client of the agent, if the employment agency contract is not, and does not result in the creation of, a contract of employment between the worker and the client. resultant provision means subsection (2) , paragraph (a) , (b) , (c) or (d) . return period means— for an employment agent who is required to lodge periodic returns—a periodic return period or financial year; or for an employment agent who is exempt under section 62 from lodging periodic returns—a financial year. s 13LA (prev s 51) ins 1996 No. 70 s 21 amd 2001 No. 71 s 551 sch 1 ; 2004 No. 46 s 41 sch ; 2008 No. 16 s 13 (1) – (4) renum and reloc 2008 No. 16 s 13 (5) amd 2009 No. 19 ss 56 , 73 ; 2022 No. 30 s 24 (sec.13LA-ssec.1) This section applies if— an avoidance arrangement exists in relation to an employment agency in a return period; and the assumed non-adjusted tax and levy for the period is less than the assumed adjusted tax and levy for the period. (sec.13LA-ssec.2) If this section applies in a return period, for the period— if the avoidance arrangement involves an employment agent acting as trustee for a client of the employment agent under a trust or acting as agent for a client of the employment agent under an employment agency contract— section 92 (1) does not apply to the trustee or agent, or in relation to the trust or employment agency contract; and if the avoidance arrangement involves a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients—the client or clients is or are taken not to have the controlling interest; and the employment agent, or each employment agent, involved in the employment agency is answerable as an employer for doing everything required to be done under this Act for the payment of wages by the employment agent that are subject to payroll tax or the mental health levy under this Act (including the giving of returns and payment of payroll tax or the mental health levy); and if the employment agency involves more than 1 employment agent—the employment agents constitute a group. (sec.13LA-ssec.3) For this section, a client has, or clients have, a controlling interest in a business if the client has, or the clients have, a controlling interest in the business under section 71 . (sec.13LA-ssec.4) In subsection (1) — a reference to the assumed non-adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated without applying any resultant provision; and a reference to the assumed adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated applying each relevant resultant provision. (sec.13LA-ssec.5) To remove any doubt about the application of subsection (4) (b) , it is declared that if an employment agency is involved in more than 1 avoidance arrangement in a return period, subsection (4) (b) is to be applied by first applying each relevant resultant provision to each avoidance arrangement and then calculating the total amount for the subsection. (sec.13LA-ssec.6) In this section— avoidance arrangement means an arrangement involving an employment agency if the arrangement involves 1 or more of the following— an employment agent acting as trustee for a client of the employment agent under a trust; an employment agent acting as agent for a client of the employment agent under an employment agency contract; a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients. client includes an individual or company that— under the Duties Act 2001 , section 164 , is a related person of the client; or is related to the client in another way prescribed under a regulation. employment agency means a business enterprise involving— the business of an employment agent; or the businesses of 2 or more employment agents. employment agency contract see the definition employment agent for this section. employment agent means a person who, by a contract, agreement, arrangement or undertaking (the employment agency contract ), procures the services of another person (the worker ) for a client of the agent, if the employment agency contract is not, and does not result in the creation of, a contract of employment between the worker and the client. resultant provision means subsection (2) , paragraph (a) , (b) , (c) or (d) . return period means— for an employment agent who is required to lodge periodic returns—a periodic return period or financial year; or for an employment agent who is exempt under section 62 from lodging periodic returns—a financial year. - (a) an avoidance arrangement exists in relation to an employment agency in a return period; and - (b) the assumed non-adjusted tax and levy for the period is less than the assumed adjusted tax and levy for the period. - (a) if the avoidance arrangement involves an employment agent acting as trustee for a client of the employment agent under a trust or acting as agent for a client of the employment agent under an employment agency contract— section 92 (1) does not apply to the trustee or agent, or in relation to the trust or employment agency contract; and - (b) if the avoidance arrangement involves a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients—the client or clients is or are taken not to have the controlling interest; and - (c) the employment agent, or each employment agent, involved in the employment agency is answerable as an employer for doing everything required to be done under this Act for the payment of wages by the employment agent that are subject to payroll tax or the mental health levy under this Act (including the giving of returns and payment of payroll tax or the mental health levy); and - (d) if the employment agency involves more than 1 employment agent—the employment agents constitute a group. - (a) a reference to the assumed non-adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated without applying any resultant provision; and - (b) a reference to the assumed adjusted tax and levy for a return period is a reference to the total amount of payroll tax and the mental health levy that would be payable by the employment agent or agents involved in the employment agency for the period if the amount were calculated applying each relevant resultant provision. - (a) an employment agent acting as trustee for a client of the employment agent under a trust; - (b) an employment agent acting as agent for a client of the employment agent under an employment agency contract; - (c) a client of an employment agent acquiring, or clients of an employment agent jointly acquiring, a controlling interest in the business of the employment agent referable to the client or clients. - (a) under the Duties Act 2001 , section 164 , is a related person of the client; or - (b) is related to the client in another way prescribed under a regulation. - (a) the business of an employment agent; or - (b) the businesses of 2 or more employment agents. - (a) for an employment agent who is required to lodge periodic returns—a periodic return period or financial year; or - (b) for an employment agent who is exempt under section 62 from lodging periodic returns—a financial year.