New Zealand


  • Service: Tax
  • Type: Business and industry issue
  • Date: 7/12/2012

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John Cantin

John Cantin

Partner  - Tax 

+64 4 816 4518

Rebecca Armour

Partner - Tax

+64 9 367 5926


Taxmail - IRD changes view on accommodation allowances 

Issue 1, December 2012


The Inland Revenue's recent Statement signals a significant and unwelcome change in approach to accommodation and accommodation allowances.


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. This will have retrospective effect.


In this taxmail we discuss the Statement and its implications for employers (and employees).


The IRD’s position is contrary to common practice, including its own previous statements, and seems to be trying to rewrite history.


The technical reasoning adopted in the Statement is unclear and elements of the interpretation are inconsistent. We are not convinced IRD has this right from either a technical or policy point of view.


Our tax advisory team has the skills and commitment to help you to be competitive and compliant in all areas of business tax.
Taxmail - Comment on topical tax issues from KPMG NZ Tax. 
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