Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


KPMG Critical Of Inland Revenue Position On Accommodation


Media Release

6th December 2012

KPMG Critical Of Inland Revenue Position On Accommodation

Inland Revenue released today a Commissioner’s Statement signalling a significant and unwelcome change in approach to accommodation and accommodation allowances. This includes situations where employees have accommodation provided by their employers while temporarily relocated or are travelling for work.

Contrary to long-standing practice, the Statement suggests that the value of accommodation is taxable even if an individual is maintaining a home elsewhere and does not benefit from the arrangement.

While the Statement acknowledges that “overnight or other short term stays” should not be taxable, it implies that anything more than a few days would be – and always should have been.

Murray Sarelius, tax partner at KPMG said “The Inland Revenue’s position is contrary to common practice, including its own previous statements, and seems to be trying to rewrite history.”

“This seems to be a situation where Inland Revenue is dealing with a few extreme cases on audit, and is stretching to justify its position in a way that applies much too broadly. The result penalises the majority of situations where there should not be an issue.” said Sarelius.

“The most obvious group of people impacted by this interpretation will be employees temporarily located in Christchurch to assist with the rebuild. Inland Revenue is suggesting they should be taxed on their accommodation, regardless of the fact that they and their families live elsewhere.”

The interpretation will not only impact on employers, but on individuals. An employee could see their student loan repayments increase, or Working for Families entitlements reduce, as a consequence of needing to travel for work.

“Inland Revenue seems to have missed the modern reality of workforce mobility. Businesses needs to deploy talent and skills where required – whether to enhance productivity generally or to meet specific challenges, such as the Christchurch rebuild.” said Sarelius.


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news