The tax implications of an award or settlement are not always considered by counsel in employment matters – or at least not at a time when they should be.

Among the significant concerns are tax issues would warrant attention and their respective implications, when Inland Revenue will challenge a large compensation or other payment, and the tax risks involved in relation to bonus payments and shares, and contributions to costs.

Counsel needs to know how to navigate the bands set by the Employment Court, the norms in the Employment Relations Authority, and Inland Revenue’s rulings. Plus, the mechanics and timing of payments affect the position in question. 

With perspectives and insights from employment lawyers, a tax specialist, and an Inland Revenue representative, this session will cover these and other issues in relation to tax in the litigation employment context.  

Who should attend?

Those practising in employment law at junior to intermediate level or those more senior seeking a refresher.  

Learning Outcomes

• Develop a better awareness of the context in which tax issues arise in contentious/litigation employment matters, and how they can impact on the outcome – whether imposed or negotiated – for your client.
• Improve your understanding of the legal framework, including the Employment Court’s bands, the Employment Relations Authority’s guidelines and Inland Revenue’s rulings.
• Gain a better understanding of tax issues in respect of hurt-and-humiliation compensation payments; other payments such as redundancy compensation, bonuses, shares and KiwiSaver; and legal costs and indemnities for the same.
• Through case studies, benefit from legal, tax and regulator perspectives on tax issues and considerations that commonly arise and ways to manage them.

Presenter Details

Claire Mansell

Geoff Clews

Jill Collins

Rob Towner - Chair