ACC Fails to levy and pay entitlements to self employed
The New Zealand Accident Compensation Corporation has failed to implement the will of New Zealand's sovereign parliament. The Corporation failed to implement a levy / entitlement process for a new class of PAYE earner that was introduced in to the New Zealand tax system by the Income Tax Act 2007. Before 2007 there were three types of earner that were eligible for earnings related compensation (weekly compensation) for loss of earnings due to personal injury. They are:
PAYE Salary and Wage Earner (Permanent Employee)
PAYE Shareholder Employee Business owner who pays themselves a PAYE salary as if they were a salary and wage earner.
Self-Employed Earner Earnings determined by previous financial year total earnings after deduction of expenses. (Relevant Year)
The new type of earner that was introduced in to the tax system by the Income Tax Act 2007 is
Self-Employed Earner Contractor who receives PAYE schedular payments as required by Schedule 4 of the IT Act 2007.
For detailed information on all types of earner go here.
On the 1st of April 2008, three amendments were introduced into the AC Act 2001. These amendments added the consideration PAYE Income Payment to the levy process that applies under Section 221 of the AC Act 2001. As a result of these amendments the Corporation has been required by law to levy and pay entitlement on ALL PAYE Income Payments that are made to earners.
The new self employed person who receives PAYE Income Payments for the purposes of the PAYE Rules was supposed to be levied in exactly the same manner as salary and wage earners and shareholder employees. It is fact that the Corporation failed implement this process as required by law. When this new type of earner started appearing on the ACC system the Corporation took it upon itself to "decide" how the levy process should work and in doing so misapplied a part of the legislation that only applies to salary and wage earners.
The result of that is that the levy / entitlement process for self-employed earners who receive PAYE schedular payments has laid dormant in the Accident Compensation scheme for thirteen years and thousands of injured self-employed earners have been deprived of millions of dollars of their lawful entitlements. That is fact. It is also fact that the Corporation is guilty of corrupt practice and misfeasance. The evidence is available as an option at the end of this page.
The Income Tax Act 2007 created a second type of self-employed earner. All workers who perform certain roles as described in Schedule 4 of the IT Act 2007 are required by law to be paid under the PAYE Income Payment system in the form of PAYE Schedular Payments.
These earners are supposed to have their ACC levies deducted at the time of payment under Section 221 of the AC Act 2001 and this has not taken place. As a result ACC refuse to compensate this type of self-employed earners PAYE earnings unlawfully.
ACC has exceeded its power under legislation. Follow the link below to find out how and why this matter. To examine the full application of the levy process in question see application of the act below. I am also accusing the Corporation of corrupt practice and misfeasance. I am accusing the reviewer and the district court of being complicit in that misfeasance and therefore party to subverting the office of the Governor General. All that is covered in the provided link. The resource page provides all the required background information to support these allegations.