New Zealand Tax Agency Seeks Comments on Exposure Draft Clarifying Exemption for Additional Transport Allowances

The New Zealand Inland Revenue June 7 opened a consultation on Exposure Draft No. ED0243, clarifying the tax exemption on employee allowances for additional transport costs. The draft interpretation statement explains: 1) key definitions concerning the transportation allowances; 2) conditions for the application of the additional transport cost exemption; 3) factors contributing to additional transport costs; 4) the provision for employees incurring additional transport costs in fulfilling a statutory obligation; 5) the calculation method of additional transport costs under specified conditions; 6) provisions concerning the extent to which any allowance is exempt if circumstances change; and 7) the travel limit ...