TAX MATTERS: Tax relief for non-exec directors – could this be true?

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A DIRECTOR can be classified as a non-executive directors (“NED”) or executive director. An executive director is a full-time employee of the company with day-to-day responsibilities. On the other hand, a NED is a member of a company’s board of directors who is not part of the executive team.
They do not engage in the day-to-day management of the organisation but are involved in policymaking and planning exercises. NEDs are responsible for monitoring the executive directors and advising the company stakeholders.

This position is recognised by the Income Tax Act. It subjects the earnings of the executive director to payroll taxes while treating those of NEDs as business income subject to corporate income tax (“CIT”).