Tax status of carparks to remain unchanged
Minister of Finance
Minister for Revenue
18 March 2013 Media
Tax status of carparks
to remain unchanged
The Government will not
continue with a proposal which would have changed the way
some employer-paid carparks in central Auckland and
Wellington are treated for tax purposes, Finance Minister
Bill English and Revenue Minister Peter Dunne say.
proposal was made as a matter of fairness, because in
general we consider that cash and non-cash benefits should
be taxed the same way,” Mr English says.
“While we do
not resile from that general principle of fairness, we do
need to be pragmatic. This was considered likely to be one
of those proposals from IRD where the cost of compliance,
compared with the likely return, made it not worth
Mr Dunne says officials’ estimates of the
number of carparks which would have been affected were far
fewer than the 180,000 that was being talked about
“Even so, for expected revenue of about $17
million, and the difficulties around ensuring the policy
would not have adversely impacted other workers, it seems
sensible not to proceed,” Mr Dunne says.
continue to focus on fairness in the tax system but we also
think that there are bigger and more important tax matters
for officials to focus on.”
Ministers said that the
issue was under consideration at select committee and had
attracted considerable comment.
On balance, Cabinet has
decided not to continue with it.
© Scoop Media
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