New Zealand Tax Agency Issues Technical Decision Clarifying GST Taxation for Employee Accommodation

The New Zealand Inland Revenue Nov. 20 issued Technical Decision Summary No. 24/21, clarifying taxation of an accommodation provided by the taxpayer, a company, to an employee as part of health and safety obligations. The taxpayer leased the accommodation from a company owned by the employee’s partner. The Customer and Compliance Services of Inland Revenue argued that income tax and GST should apply, considering that the accommodation was provided free of charge. The taxpayer contended the lease was for business purposes and any tax should be based on market rental value. The Tax Counsel Office noted: 1) the terms of ...