Skip to main content
QB 21/04
18 May 2021

When an employer is party to an employee share scheme, when does an employer's expenditure or loss under s DV 27(6) or income under s DV 27(9) arise?

This question we've been asked is relevant to any employer who is party to an employee share scheme where the employee receives a benefit under the scheme within 20 days of:

  • the end of the employer’s income year; or
  • a breach of shareholder continuity in the employer (for example, due to an employee share scheme winding up as a result of an acquisition). 

Tax Information Bulletin Vol 33 No 6 - July 2021


Income Tax Act 2007 – sections BG 1, CD 43(6E), CD 43(6F), CD 43(6G), CD 43(6H), CD 43(6I), CD 43(6J), CD 43(6K), CE 1(1)(d), CE 2, CE 7, CE 7B, CV 20, DA 1, DA 2, DV 27, RD 6(3)(a), RD 7B, RD 22

Commerce Commission v Fonterra Co-operative Group Ltd [2007] NZSC 36
CIR v Alcan New Zealand Ltd (1994) 16 NZTC 11,175