Business group against car park tax
Thu, 04 Oct 2012 6:30p.m.
By Adam Hollingworth
An Auckland business organisation is labelling Government plans to tax those parking spaces allocated as a perk "mean-spirited".
The Newmarket Business Association says the Government is unfairly targeting businesses in the CBDs of Auckland and Wellington, where parking a car is most expensive.
Many workers take a parking space close to work as an untaxed perk of their employment package, but the Government wants to close that loophole.
If you have an allocated car park in Auckland or Wellington CBDs you're now going to get stung with something called the Fringe Benefit Tax.
The Newmarket Business Association says it's a mean-spirited move.
“The provision of parking is a tool of trade, it's not a perk,” says Newmarket Business Association CEO Ashley Church.
“By taxing this particular amenity that's available to workers it's going to make it extraordinarily difficult for workers and people that otherwise would have to pay for it themselves.”
Parking has become big business. An online auction site today had one parking space at a car park on Queen St priced at $70,000. The same price as three-bedroom homes on 1000 square metre blocks in Taumaranui, Tuatapere and Patea.
When the change was mooted six months ago the Government was eyeing up revenue from $700 million in untaxed benefits across the country. Those plans have since been scaled back to Auckland and Wellington CBDs, and shift workers won't be targeted, but one tax expert says it'll still be complicated.
“I think the proposal is fine in principal because they are trying to tax substitutes for salary but I think the rules that they're likely to come up with when we see the detail will be very complex for employers to administer and are not likely to raise a lot of revenue,” says PriceWaterhouseCoopers tax specialist Geof Nightingale.
The changes will come into effect next year, and from April 2014 the IRD will be collecting.
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5/10/2012 7:31:41 a.m.
Jim Seaview wrote:
QUOTE 1: "The Newmarket Business Association says the Government is unfairly targeting businesses in the CBDs of Auckland and Wellington, where parking a car is most expensive"
QUOTE 2: "I think the rules that they're likely to come up with when we see the detail will be very complex for employers to administer and are not likely to raise a lot of revenue,” says PriceWaterhouseCoopers tax specialist Geof Nightingale."
WHEN NATIONAL CAMPAIGED on closing the income gap between NZ and Australia they now come up with another brainless idea to penalise those people who are GAINFULLY EMPLOYED and already paying taxes.
Who actually thought up this brilliantly stupid idea of "lets tax people for taking their vehicle to work"? This is just another in the coffin for trying to keep employable Kiwis from emigrating to Ozzie. Added to that the IRD have decided to make it complex for employers to administer is just another kick in the guts for employers trying to retain good staff.
Its alright if your name is Banksy as you can just get a ride in friends helicopter and dont (remember) sorry - declare it!!!
4/10/2012 7:40:13 p.m.
the DR wrote:
wall i think. no i know if you can afford to spend thousands of dollars on a car park you can afford to to pay a little more tax lets face it everything else will be raped up in a flash family trust. if you don't like it catch the bus like the rest of us. or pay your taxes! just like the rest of us do
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