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Income Tax Act 2007

Income - Terminating provisions

CZ 30: Transitional provision: application of certain accommodation provisions

You could also call this:

“Explaining how to apply new rules for work-related accommodation and meal expenses from 2011 to 2015”

This law talks about how to handle money spent on accommodation and meals for work between 1 January 2011 (or 1 April 2011) and 31 March 2015. If you’re an employer, you can choose to use the new rules for this time period, but only if you didn’t already say the money was taxable before 6 December 2012. For accommodation, you can use either the actual time an employee worked away from home, or how long you thought they would be working away. The new rules are treated as if they started on 1 January 2011 for accommodation and 1 April 2011 for meals. They apply to the income year that includes those dates and all years after that.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM6193227.

Topics:
Money and consumer rights > Taxes
Work and jobs > Worker rights
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Part C Income
Terminating provisions

CZ 30Transitional provision: application of certain accommodation provisions

  1. This section applies for the purposes of sections CE 1B, CW 16B to CW 16F, and CW 17CB (which relate to expenditure on accommodation and work-related meals) when an employer provides accommodation or incurs expenditure that meets the requirements of those provisions in the period that starts on 1 January 2011 or 1 April 2011, as applicable, and ends on 31 March 2015.

  2. Despite the commencement and application provisions in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 relating to the accommodation provisions, the employer may choose to apply those provisions to the expenditure incurred in the period, but only if they have not, before 6 December 2012, taken a tax position that the accommodation expenditure is taxable.

  3. Despite the commencement and application provisions in the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 relating to the work-related meal provisions, the employer may choose to apply those provisions to expenditure incurred in the period on work-related meals, but only if they have not already taken a tax position that the expenditure is taxable.

  4. For the purposes of this section and section CW 16C, and for the period referred to in subsection (1), a time limit may be either—

  5. the actual period of continuous work of the employee at the distant workplace; or
    1. a time limit based on the employer's expectation of the employee's involvement in an out-of-town secondment or project of limited duration.

      1. For the purposes of this section, the commencement and application provisions in sections 2, 15, 24, and 26 of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 are treated as—

      2. commencing on 1 January 2011 for the accommodation provisions, and 1 April 2011 for the work-related meal provisions:
        1. applying for the person's income year that includes 1 January 2011 or 1 April 2011, as applicable, and for all later income years.

          Notes
          • Section CZ 30: inserted (with effect on 1 January 2011 and applying for a person's income year that includes that date and for later income years), on , by section 38(1) of the Taxation (Annual Rates, Employee Allowances, and Remedial Matters) Act 2014 (2014 No 39).
          • Section CZ 30 list of defined terms tax position: inserted, on , by section 243 of the Taxation (Annual Rates for 2015–16, Research and Development, and Remedial Matters) Act 2016 (2016 No 1).