Third party payments
The payment need not be paid directly to the employee, nor directly by the employer. When paid in relation to an employee's service, they are taxable if made:
by a third party
to a third party
by a third party, to a third party.
The provisions apply equally to employees, directors or members of a governing body, former directors or members of a governing body, and any person who under a contract or arrangement is to be appointed as a director or member of a governing body.
The effect of this provision is to include as wages any payments relating to a service, even if paid to someone other than the person doing the work. This is important when the worker provides services through a company or trust structure or where employees are seconded to a subsidiary or parent company.
