While Ministers noted the fairness considerations underlying the proposals remained, the compliance costs, compared with the likely return (additional revenue of $17 million per annum), did not make them worth pursuing.
KPMG welcomes the announcement which takes into account the disproportionate compliance burden that would have been imposed on employers (and the costs on employees).
Tax policy involves trade-offs between simplicity, certainty, fairness and accuracy. In the case of the car park tax proposals, the level of complexity and associated uncertainty outweighed any fairness or accuracy benefits, in our view.
Government should be commended for taking a pragmatic view and making the right call.