New Zealand


  • Service: Tax
  • Type: Business and industry issue
  • Date: 8/03/2013

Contact us

Rebecca Armour

Partner - Tax

+64 9 367 5926


olive wallis


Olive Wallis

Partner - Tax

+64 3 371 4834 



Taxmail - IRD “clarifies” stance on accommodation payments 

Issue 1 - March 2013


Inland Revenue has “clarified” its position on the taxation of employer provided accommodation and accommodation allowances where an employee is travelling for work.


This follows the widely-criticised statement issued last December where Inland Revenue stated that accommodation is (and was always) taxable even if an individual is maintaining a home elsewhere and does not benefit from the arrangement. Taxpayers were advised to make voluntary disclosures and pay tax on previously un-taxed accommodation.

The latest release suggests that that a relocation of between 6 and 12 months could potentially be a temporary shift (and therefore non-taxable) but that a shift of over 12 months is likely to be more than a temporary shift unless exceptional circumstances exist (and taxable).


The Inland Revenue statement and follow-up clarification will result in many employees travelling to Christchurch, to help with the rebuild, becoming taxable on their accommodation.


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. 
Share this

Taxmail - IRD changes view on accommodation allowances

Feature image
IRD's Statement signals a significant and unwelcome change in approach to accommodation and accommodation allowances.