42Agreement to reduce or avoid liability to payroll tax

42 Agreement to reduce or avoid liability to payroll tax

(1)  If the effect of an employment agency contract is to reduce or avoid the liability of any party to the contract to the assessment, imposition or payment of payroll tax, the Commissioner may –

(a) disregard the contract; and

(b) determine that any party to the contract is taken to be an employer for the purposes of this Act; and

(c) determine that any payment made in respect of the contract is taken to be wages for the purposes of this Act.

(2)  If the Commissioner makes a determination under subsection (1) , the Commissioner must serve a notice of the determination on the person taken to be an employer for the purposes of this Act.

(3)  The notice must set out the facts on which the Commissioner relies and the reasons for the determination.

(4)  This section has effect in relation to agreements, transactions and arrangements made before, on or after the commencement of this section.