Just got my tax bill- I have a housing allowance as part of my employment package, and for the past six years have had no problems with it as being calculated as 10% of my salary for tax purposes.
This year, for some reason my housing allowance has been calculated as salary, increasing my tax burden by a huge amount, needless to say I was shocked and plan on making an objection.
Anyone been in the same situation and have any advice?
Thanks very much in advance.
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kamm
17 yrs ago
You first need to take a look at your IR form that your accounts dept/accountant submitted to Inland Revenue to see if it has been correctly filled in (you should have a copy). If it has, just get your accounts dept to quickly calculate your tax for you to see if they agree with Inland Revenue. If it does agree, they should be able to tell you where the difference is from previous years.
You also need to double check the IR form you submitted (BIR 60) is also correct.
The IR dept are usually correct in their assessments but are also very helpful if you need to make any tax objections if they have been incorrect.
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dasia
17 yrs ago
Same thing happened to me in 2007. I checked with my payroll dept and a new girl in the dept had prepared the statements for the IR and had made a mistake with the submission. I asked her to correct it and submit again. I then received a revised bill and was a very happy with the outcome.
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Totty
17 yrs ago
You need to specifiy whether it is housing allowance or rental reimbursement. We had this problem last year and after a bit of tooing anf froing they changed it, we did also send in a breakdown of what our tax bill should be and they were very good in changing the tax bill.
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My sincere thanks to everyone who replied- I appreciate it, and I feel a bit more in control now. Turns out my accounting dept. bungled (the reporting) of my bonus, then salary, then housing allowance- Like a Michael Crichton novel. Anyway should be easy to rectify. Thanks again for all suggestions.
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