From:
Julie Miller
To:
Jane Fletcher
Subject:
FW: Cabinet Fees Framework - Ministerial Advisory Board members
Date:
Friday, May 20, 2022 3:04:29 PM
Attachments:
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IN-CONFIDENCE
Ngā mihi
Under
Julie Miller
Director Review Management & Royal Commission Response | Quality Practice & Experiences
Level 13 The Aurora Centre, 56 – 66 The Terrace, Wellington |
PO Box 546, Wellington 6140
(
T: s 9(2)(a) OIA | *
E: [email address]
Official
Information
From: Dallas Welch <[email address]>
Sent: Monday, 13 September 2021 2:01 pm
To: Julie Miller <[email address]>
Subject: RE: Cabinet Fees Framework - Ministerial Advisory Board members
Kia ora Julie
Information relevant to your questions is below:
Act
I suggest you look at the relevant sections in the Cabinet Fees Framework: CO-19-1-Fees-
Framework-for-members-appointed-to-bodies-in-which-the-Crown-has-an-interest.pdf
(publicservice.govt.nz)
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Tax
These paragraphs are particularly pertinent.
Paragraph 166
A payment of fees is generally made to and derived by the member and is in most cases classified as
‘payments of company directors’ fees, examiners’ fees, honoraria, and other payments’ which is a
form of schedular payment. The tax rate for these payments is 33 cents in the dollar unless Inland
Revenue has issued an exemption certificate or a special tax rate certificate to the recipient, or the
recipient has chosen their own rate (a minimum of 10 cents in the dollar).
Paragraph 170
A payment of fees to a member, in respect of their capacity as a board member, is not subject to GST.
However, if a person is carrying on a taxable activity and accepts office as part of their taxable activity,
any service supplied by that person as holder of that office is deemed to be supplied in the course or
furtherance of that taxable activity. Accordingly, the member must return GST on fees they charge for
services as a director.
Release
IRD is the best place to go for specific advice. Denise Birdling, Team Lead, Significant Enterprises,
Inland Revenue email: [email address] or phone (04) 890 6295 is a useful contact.
Hours
Paras 48 and 49 of the Framework are relevant.
Paragraph 48 Under
It is expected that a working day is about 8 hours, and the daily fee is calculated on this basis. Work
for longer than 8 hours in one day must not attract an extra payment, unless the combination of
travel and work is frequently longer than 8 hours. (see para 81).
Paragraph 49
Hourly pro-rata rates should be calculated by dividing the daily rate by 8 and multiplying by the
Official
number of hours worked
I hope these references are useful. Our Crown Entities team would be happy to answer further
question if you have any .
Dallas Welch
Kaikōmihana Tautāwhi |
Assistant Commissioner Information
Te Aromātai Whakatatutukitanga | System & Agency Performance
waea pūkoro: s 9(2)(a) OIA |
īmēra: [email address]
Te Kawa Mataaho Public Service Commission
www.publicservice.govt.nz | www.govt.nz
Act
1982
From: Julie Miller <[email address]>
Sent: Monday, 13 September 2021 10:57 am
To: Dallas Welch <[email address]>
Subject: Cabinet Fees Framework - Ministerial Advisory Board members
Importance: High
IN-CONFIDENCE
Kia ora Dallas
I hope you are well.
We have been reviewing the invoices from the members and Chair of the Ministerial Advisory Board
and would like to check your understanding of the fees and seek some guidance.
The MAB Chair and members have been submitting invoices for their work with the Board relative to
Release
their daily rate fees agreed at their commencement on the Board in February 2021. The invoices
include an amount for GST, it is my understanding that Board Fees are not subject to GST, can you
confirm whether this is correct and provide some guidance? In addition, some members are claiming
additional hours over and above the daily rate fee, the hourly rate being claimed is the daily rate
divided by 7.5, it is my understanding that the daily rate should be divided by 8 to get the hourly rate.
Again, can you confirm your understanding of this.
Under
It would be great if you could provide me your thoughts as soon as possible please, I look forward to
hearing from you.
Ngā mihi
Official
Julie Miller
Acting Director Review Management | Governance and Engagement
Level 13 The Aurora Centre, 56 – 66 The Terrace, Wellington |
PO Box 546, Wellington 6140
(
T: s 9(2)(a) OIA | *
E: [email address]
Information
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