The employee share scheme (ESS) tax regime was reformed in 2018. Inland Revenue has produced six items (five interpretation statements and one question we’ve been asked), with each one focusing on specific tax implications for ESS. Together these items aim to provide guidance and examples that demonstrate the Commissioner’s (draft) view on some of the issues related to ESS. These items include:

• PUB00364/A (interpretation statement): What an employee share scheme is, the taxing date and apportionment
• PUB00364/B (interpretation statement): Deductions for parties to employee share schemes
• PUB00364/C (interpretation statement): Trustee of employee share scheme trust treated as nominee
• PUB00364/D (interpretation statement): Employee Share Scheme benefits paid in cash – PAYE and KiwiSaver obligations
• PUB00364/E (interpretation statement): PAYE – How an employer funds the tax cost on an employee share scheme benefit
• PUB00364/F (QWBA): Fringe benefit tax – employee share loans and associates

According to CA ANZ, the statements provide in-depth analyses and helpful examples to illustrate and explain various concepts.

CA ANZ suggests the examples follow the relevant commentary rather than be grouped at the end of the statements and some aspects of the items be reviewed and clarified with additional references.