New Zealand Case Law: Decisions & Judgments | LexChat

Topic

Shareholder-employee

Legal area

Court

27 Nov 2019

HAMILTON v ACCIDENT COMPENSATION CORPORATION [2019] NZHC 3109

Citation

[2019] NZHC 3109
Court

High Court

s 15(3) and cl 50 require identification of services performed as employee and director and an objective assessment of reasonable remuneration for those services; company profits are only relevant if there is a factual link between the claimant's services and those profits; the Corporation's adoption of a 75% of net profits formula lacked that factual link and failed to respect the statutory distinction between remuneration and dividends, so it was an error of law.
3 Oct 2001

Accident Compensation Corporation v Campkin

Citation

[2001] NZACC 280
Court

District Court

Payments credited to the respondent were not 'source deduction payments' under sOB(2) of the Income Tax Act 1994 and therefore the respondent had no 'earnings as an employee' for the 52 weeks prior to incapacity; accordingly Clause 16(4) applies and weekly earnings are calculated from the respondent's shareholder/employee earnings in the relevant year (year ended 31 March 1999) of $41,951 divided by 52; the Reviewer's decision was wrong and the appellant's primary decision is reinstated.