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

False Electoral Return: John Banks Sentenced To Community Detention, Community Work

“The conviction of John Banks today is another sad chapter for John Banks and the ACT Party”, says Labour candidate for Epsom Michael Wood.

“Mr Banks was found guilty of electoral fraud in June. Regardless of what sentence is handed down, his reputation is in tatters. Sentencing is a matter for the court, and publicly deriding him further brings little benefit.”

“With the conviction confirmed, it is time for the ACT Party to step up to the mark and apologise to the people of Epsom. Mr Banks has suffered the consequences of his actions, but so far the ACT Party has gotten off scott-free” More>>

 

Parliament Today:

Gordon Campbell: On The Rise Of ISIS And Labour

While global attention got distracted by the fate of MH17 and the atrocities in Gaza, the world’s other mega ‘bad news’ story – the rise of ISIS-led fundamentalism in Iraq – has reached a tipping point. More>>

ALSO:

Rebuild: Christchurch City Council Releases Milestone Report

The Cameron Partners report says the Council may need to find an additional $783 million to $883 million by 2019... Options Cameron Partners proposed include increasing rates, borrowing more, maximising insurance payments, and freeing up capital from its commercial assets. More>>

ALSO:

Parliament Today: Parliament Adjourns

The 50th Parliament has adjourned for the final time. After the completion of the adjournment debate, MPs left for the campaign trail with Parliament to be dissolved on August 14 ahead of the September 20 election. More>>

ALSO:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news