[IRD] claims also that while the ruling may appear to be new, such accommodation payments should have been treated as income and attracted PAYE tax payments for some years. Taxpayers who thought they had treated such payments incorrectly are being urged to make voluntary declarations."In many cases those making a voluntary disclosure will only be required to account for PAYE over the previous two years, and they will not be subject to use of money interest or shortfall penalties," Mr Tubb says.
KPMG's Taxmail succinctly sums up the problems:
The IRD’s position is contrary to common practice, including its own previous statements, and seems to be trying to rewrite history. The technical reasoning adopted in the Statement is unclear and elements of the interpretation are inconsistent. We are not convinced IRD has this right from either a technical or policy point of view.
Now, with anger on 100%, I have to move from a Minister who may well end up advocating torturing dogs so the 99% can deaden the pain of our social(alist) democracy with party pills, to my neighbour who I have little doubt uses the damned things, and has, after so much effort and aggro from this household to improve the lot of their poor wee dog, reverted yet again into a dog concentration camp. I'm pretty much over life circa 2012 at the moment.