New Zealand

Details

  • Service: Tax
  • Type: Regulatory update
  • Date: 22/04/2014

Contact the KPMG Tax Team

Rebecca Armour

Director - Tax

+64 9 367 5926

rarmour@kpmg.co.nz


John Cantin

John Cantin

Partner  - Tax 

+64 4 816 4518


Darshana Elwela

Darshana Elwela

National Director - Tax

+64 9 367 5940

Taxmail - Employee Benefits Bill Ammendments 

FEC has reported back a number of amendments to the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill.
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The Finance and Expenditure Committee of Parliament (“FEC”) has reported back the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Bill, with a number of amendments. The amendments are aimed at improving the operation of the various proposals in the Bill, and KPMG is generally supportive of these changes.

 

The headline change in the Bill is to the taxation of accommodation benefits. The Bill makes all accommodation benefits provided to employees taxable, from 1 April 2015, at the market value of the accommodation provided, unless a specific exemption applies.

 

A key concern for us was that this change in approach to “everything is taxable unless exempt”, from the previous “net benefit” approach, would lead to complicated law and the need for a host of exemptions and variations to the market value of accommodation to achieve an appropriate taxable outcome.

 

The FEC’s recommendation for further exclusions to improve the workability of the new rules confirms our concerns with the general approach taken in the Bill.

 

Taxmail discusses the FEC’s recommendations on the accommodation proposals, and other key changes, in the Bill.

Taxmail - Comment on topical tax issues from KPMG NZ Tax. 

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