Value of accommodation provided by employer

Submissions

(35 – PricewaterhouseCoopers, 53 – Ernst & Young)

Section CX 28 of the Income Tax Act 2007 should be amended to ensure that the provision of accommodation by an employer is not subject to FBT.

Section RD 5(8) should refer to section CE 1(c) instead of section CE 1(1)(c).

Comment

As the provision of accommodation by an employer to an employee is treated as salary or wages and subject to income tax, it should not be subject to FBT as well.

The reference to section CE 1(1)(c) is correct.

Recommendation

That the submission on CX 28 be accepted.

That the submission amending the reference to section CE 1(1)(c) be declined.