sec.50Arrangements for avoidance of tax may be disregarded

### sec.50 Arrangements for avoidance of tax may be disregarded Where any person enters into any agreement, transaction, or arrangement, whether in writing or otherwise, whereby a natural person performs or renders, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing or rendering the services and the effect of such agreement, transaction or arrangement is to reduce or avoid the liability of any person to the assessment, imposition or payment of payroll tax or the mental health levy, the commissioner may— disregard such agreement, transaction, or arrangement; and determine that any party to such agreement, transaction or arrangement shall be deemed to be an employer for the purposes of this Act; and determine that any payment made in respect of such agreement, transaction or arrangement shall be deemed to be wages for the purposes of this Act. Where the commissioner makes a determination under subsection (1) , the commissioner shall serve a notice to that effect on the person deemed to be an employer for the purposes of this Act and shall set out in the notice the facts on which the commissioner relies and the commissioner’s reasons for making the determination. See also sections 13L and 13LA for particular provisions about avoidance arrangements relating to employment agency contracts. s 50 prev s 50 om 2004 No. 46 s 33 pres s 50 ins 1984 No. 4 s 8 amd 2008 No. 16 s 12 ; 2009 No. 19 s 73 ; 2022 No. 30 s 43 (sec.50-ssec.1) Where any person enters into any agreement, transaction, or arrangement, whether in writing or otherwise, whereby a natural person performs or renders, for or on behalf of another person, services in respect of which any payment is made to some other person related or connected to the natural person performing or rendering the services and the effect of such agreement, transaction or arrangement is to reduce or avoid the liability of any person to the assessment, imposition or payment of payroll tax or the mental health levy, the commissioner may— disregard such agreement, transaction, or arrangement; and determine that any party to such agreement, transaction or arrangement shall be deemed to be an employer for the purposes of this Act; and determine that any payment made in respect of such agreement, transaction or arrangement shall be deemed to be wages for the purposes of this Act. (sec.50-ssec.2) Where the commissioner makes a determination under subsection (1) , the commissioner shall serve a notice to that effect on the person deemed to be an employer for the purposes of this Act and shall set out in the notice the facts on which the commissioner relies and the commissioner’s reasons for making the determination. See also sections 13L and 13LA for particular provisions about avoidance arrangements relating to employment agency contracts. - (a) disregard such agreement, transaction, or arrangement; and - (b) determine that any party to such agreement, transaction or arrangement shall be deemed to be an employer for the purposes of this Act; and - (c) determine that any payment made in respect of such agreement, transaction or arrangement shall be deemed to be wages for the purposes of this Act.