Announcements
PUBLISHED 14 March 2002

School board trustee fees: tax treatment to be simplified

An amendment simplifying tax requirements for fees paid to school board trustees is to be included in the taxation bill now before Parliament, the government announced today. The amendment will be included in the Taxation (Relief, Refunds and Miscellaneous Provisions) Bill, which is under consideration by the Finance and Expenditure Committee. For more information see media release.


Hon Dr Michael Cullen
Minister of Finance

MEDIA STATEMENT

Tax rules simplified for school board trustees

The government will legislate this year to simplify the tax requirements for fees paid to school board trustees, Revenue Minister Michael Cullen announced today.

"Trustees play a very valuable role in the community. As partial recompense for the time and effort they put in, they are paid a small fee or honorarium which often does not even cover their expenses.

"For tax purposes, fees amounting to less than $605 a year for trustees and $825 a year for chairpeople are not treated as income, so are not taxed.

"However, the law still requires them to file a tax return in relation to these fees, even though they may not have to file a return for anything else.

"To remove this unnecessary hassle and the associated compliance costs, the government plans to remove the legal requirement for trustees to file tax returns in these circumstances.

"Furthermore, I have asked the Finance and Expenditure Committee to expedite the issue by including the amendment in the December tax bill now before Parliament so that it can apply from the current income year instead of from 2002-03," Dr Cullen said.

Contact: Patricia Herbert [senior press secretary] 471-9412 or 021-270-9013. E-mail [email protected]