Challenge Realty Ltd v Commissioner of Inland Revenue - [1990] 3 NZLR 42

Income tax — Withholding payments — Real estate salesmen — For some years Commissioner of Inland Revenue had regarded real estate salesmen employed on commission only basis as independent contractors subject to deduction of withholding payments — In 1989 the Commissioner ruled that the salesmen were employees subject to PAYE tax deductions — Whether salesmen were independent contractors — Whether, if commissions were only source of remuneration, they were withholding payments — Whether Commissioner was estopped from treating commission as other than withholding payments — Income Tax Act 1976, ss 2, 6 and 338 — Real Estate Agents Act 1976, s 54 — Income Tax (Withholding Payments) Regulations 1979, reg 4.

Real estate agents — Salesmen — Whether real estate salesmen employed on commission only basis were for taxation purposes independent contractors — Real Estate Agents Act 1976, s 54.