Church leaders concerned about new accommodation tax regime

Church leaders from all denominations will be meeting Revenue Minister Peter Dunne this week to discuss a Government decision to tax clergy on the market rental of the church provided houses they lived in.

Although Catholic clergy will not be affected by the change because they are not paid, a Catholic Church spokeswoman said the church was supporting the other denominations.

The church leaders will be asking Mr Dunne to instruct the IRD to do “further work” on the issue because it would change the way churches had paid taxes on accommodation provided to clergy for the past 56 years.

Dunne has confirmed Inland Revenue had outlined its view on the tax treatment of employer-provided accommodation last year and religious organisations fitted into that.

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